Which of the following is characteristics is common to both monopoly and monopolistic competition?
A)Ease of entry into the industry.
B)Firms are price setters.
C)A relatively large number of sellers.
D)Long-run economic profit equals 0.

Question

Quizplus · Accepted Answer

In both monopoly and monopolistic competition, firms are price setters. Monopoly firms have market power and can set the price for their product, while firms in monopolistic competition can differentiate their products to some degree and set prices accordingly. The other characteristics listed are not common to both market structures.

Which of the Following Is Characteristics Is Common to Both