Monopolistic competition resembles pure competition because
A) both industries emphasize nonprice competition.
B) in both instances firms will operate at the minimum point on their long-run average total cost curves.
C) both industries entail the production of differentiated products.
D) barriers to entry are either weak or nonexistent.

Question

Quizplus · Accepted Answer

In both monopolistic competition and pure competition, barriers to entry are weak or nonexistent, allowing new firms to enter the market easily.

Monopolistic Competition Resembles Pure Competition Because