Asked by Manal Al-Hashmi on May 30, 2024
Verified
In the long run,perfect competitors and monopolistic competitors are similar in that they:
A) set price where MR < MC.
B) produce an output level at which P = ATC.
C) produce a product that is standardized and hard to differentiate.
D) earn a positive economic profit.
Perfect Competitors
Firms in a market structure characterized by many sellers offering identical products, where no single seller can influence market prices.
Monopolistic Competitors
Firms operating in a market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.
- Compare and contrast monopolistic competition with other market structures.
Verified Answer
Learning Objectives
- Compare and contrast monopolistic competition with other market structures.
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