Which one of the following statements is TRUE for both perfect competition and monopolistic competition?
A) Each type of firm faces a downward sloping demand curve.
B) Each type of firm produces a homogeneous product.
C) In the long run, firms in both industries make zero economic profit.
D) Each type of firm competes on product quality and price.
Correct Answer:
Verified
Q163: A monopolistically competitive firm is similar to
A)
Q164: In the long-run, a firm in monopolistic
Q165: In the long-run equilibrium, a firm's price
Q166: In the long run, monopolistically competitive firms
Q167: Excess capacity is the
A) difference between a
Q169: In monopolistic competition, in the long run
Q170: In monopolistic competition, in the long run
Q171: In monopolistic competition, in the long run
Q172: The efficient scale of a firm is
Q173: A monopolistically competitive firm in the long
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents