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One of the Differences Between Perfect Competition and Monopolistic Competition

Question 9

Multiple Choice

One of the differences between perfect competition and monopolistic competition is that


A) the monopolistic competitor charges a price above average total cost in the long run, whereas the perfect competitor does not.
B) the monopolistic competitor sells a homogeneous product, whereas the perfect competitor does not.
C) the monopolistic competitor seeks to maximize profits, whereas the perfect competitor does not.
D) the monopolistic competitor has some control over price, whereas the perfect competitor does not.

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