Imagine a market in which firms are identical in size, produce the same products, and earn no economic profits. This is called
A) monopolistic competition.
B) an oligopoly.
C) perfect competition.
D) a duopoly.

Question

Quizplus · Accepted Answer

In perfect competition, firms are identical, produce homogeneous products, and earn zero economic profits in the long run due to free entry and exit in the market.

Imagine a Market in Which Firms Are Identical in Size