The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economics profit of zero in the long run. Given this information, one can conclude that
A) The markets for Product A and Product B are perfectly competitive.
B) The markets for Product A and Product B are monopolistically competitive.
C) The market for Product A is monopolistically competitive and the market for Product B is perfectly competitive.
D) The market for Product A is perfectly competitive and the market for Product B is monopolistically competitive.
Correct Answer:
Verified
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