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A Monopolistically Competitive Firm Is Like an Oligopolistic Firm Insofar

Question 3

Multiple Choice

A monopolistically competitive firm is like an oligopolistic firm insofar as


A) both face perfectly elastic demand.
B) both can earn an economic profit in the long run.
C) both have MR curves that lie beneath their demand curves.
D) neither is protected by high barriers to entry.
E) both are price takers.

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