Which of the following assumptions applies to both perfect competition and monopolistic competition?
A)many buyers and sellers
B)easy entry into and exit from the market
C)profit is maximized at the level of output for which MR = MC
D)a and c
E)all of the above

Question

Quizplus · Accepted Answer

Both perfect competition and monopolistic competition assume many buyers and sellers, easy entry and exit from the market, and that profit is maximized where marginal revenue (MR) equals marginal cost (MC).

Which of the Following Assumptions Applies to Both Perfect Competition