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.
Correct Answer:
Verified
Q271: The Karaoke Channel Online streams professional-grade karaoke
Q272: What is product differentiation? What market structure
Q273: Which of the following four firms would
Q274: Agave, Six Feet Under, Globe, Silk, Sotto
Q275: The Karaoke Channel Online streams professional-grade karaoke
Q277: La Super Rica is a taco stand
Q278: How do the characteristics of perfect competition
Q279: "One of the defining features of monopolistic
Q280: The Karaoke Channel Online streams professional-grade karaoke
Q281: Why are firms in monopolistic competition unable
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