Which of the following characteristics does perfect competition share with monopolistic competition?
A)price-taking firms
B)zero long-run economic profit
C)homogeneous product
D)some barriers to entry
E)economies of scale in production

Question

Quizplus · Accepted Answer

Both perfect competition and monopolistic competition result in zero long-run economic profit due to the lack of barriers to entry, allowing firms to enter and exit freely until profits are normalized.

Which of the Following Characteristics Does Perfect Competition Share with Monopolistic