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The Market for Wheat Can Be Described at Perfectly Competitive

Question 276

Multiple Choice

The market for wheat can be described at perfectly competitive while the market for pizza is better described as monopolistically competitive. Which of the following is a NOT a similarity between perfectly competitive and monopolistically competitive firms?


A) Both monopolistically competitive and perfectly competitive firms produce at their efficient scale.
B) Both monopolistically competitive and perfectly competitive firms are free to enter and exit the market.
C) Both monopolistically competitive and perfectly competitive firms have a small market share.
D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.

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