Which of the following is a characteristic of a perfectly competitive industry?
A) A perfectly competitive industry has a large number of small firms.
B) Each firm in a perfectly competitive industry has a degree of market power.
C) There are moderate barriers to entry in a perfectly competitive industry.
D) Each firm in a competitive industry earns positive economic profits in the long run.
E) Firms in a perfectly competitive industry practice product differentiation.
Correct Answer:
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