Monopolistic competition is similar to perfect competition because firms in both market structures:
A)are price-takers.
B)produce goods that are perfect substitutes.
C)find it beneficial to advertise.
D)do not face any barriers to entry into the industry in the long run.

Question

Quizplus · Accepted Answer

In both monopolistic competition and perfect competition, there are no barriers to entry in the long run, allowing firms to enter and exit the market freely.

Monopolistic Competition Is Similar to Perfect Competition Because Firms in Both