The characteristic below that is common to monopolistic competition and perfect competition is
A)Firms produce identical products.
B)Entry barriers into the industry are low.
C)Each firm faces a downward-sloping demand curve.
D)Firms take market prices as given.

Question

Quizplus · Accepted Answer

Both monopolistic competition and perfect competition feature low entry barriers, allowing new firms to enter the market relatively easily. This contrasts with other market structures like oligopoly or monopoly, where high entry barriers can exist.

The Characteristic Below That Is Common to Monopolistic Competition and Perfect