The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economic profit of zero in the long run. Given this information, one can conclude that

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Quizplus · Accepted Answer

The market for Product A is perfectly competitive because there are many sellers of identical products and each earns zero economic profit in the long run. In perfect competition, there are no barriers to entry or exit and firms earn zero economic profit in the long run.
The market for Product B is monopolistically competitive because there are many sellers of differentiated products and each earns zero economic profit in the long run. In monopolistic competition, there are low barriers to entry and exit, firms have some control over their prices, and each firm produces a slightly different product.

The Market for Product a Has Many Sellers, Selling Identical