Which is true of pure competition but not of monopolistic competition?
A) There are no significant barriers to entry.
B) Long-run economic profits are zero.
C) There are a large number of firms in the market.
D) Long-run equilibrium occurs at the minimum point on the ATC curve.

Question

Quizplus · Accepted Answer

In pure competition, firms produce at the minimum point of the Average Total Cost (ATC) curve in the long run, achieving productive efficiency, which is not necessarily the case in monopolistic competition due to product differentiation.

Which Is True of Pure Competition but Not of Monopolistic