The best description of industries below is that:

Question

Quizplus · Accepted Answer

Monopolistically competitive firms are characterized by a large number of small firms that operate in a market where they can differentiate their products to some extent. This puts these firms in a position between a monopoly (where there is only one seller) and perfect competition (where there are many identical firms). In the short run, firms in a monopolistically competitive industry can earn economic profit or suffer losses, but in the long run, entry and exit of firms leads to zero economic profit. Therefore, in the long run, the monopolistically competitive industry is more competitive than a monopoly, but less competitive than perfect competition. The other choices are incorrect because they either make incorrect statements or are not related to the description of industries.

The Best Description of Industries Below Is That