Which of the following is a feature that is shared between perfect competition and monopolistic competition, but not between monopolistic competition and monopoly?

Question

Quizplus · Accepted Answer

Both perfect competition and monopolistic competition have entry in the long run, meaning that new firms can enter the market if there are profits to be made. Monopoly, on the other hand, does not have entry in the long run since there is only one firm in the market. Rule for maximizing profits (A) is not unique to perfect competition or monopolistic competition, as all types of firms try to maximize profits. Ability to earn profits in the short run (B) is also not unique to perfect competition or monopolistic competition, as even monopolies can earn profits in the short run. Price exceeding marginal cost (D) is a feature unique to monopoly, as in perfect competition and monopolistic competition firms have to price at or below their marginal cost in order to remain competitive.

Which of the Following Is a Feature That Is Shared