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Which of the Following Is True About Monopolistic Competition but False

Question 8

Multiple Choice

Which of the following is true about monopolistic competition but false about perfect competition?


A) Firms cannot make an economic profit in the long run.
B) Firms compete on their product's price as well as its quality and marketing.
C) There are a large number of independently acting sellers.
D) Firms can make an economic profit in the short run.
E) There are no barriers to entry.

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