The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a:

A. horizontal demand curve and price exceeds marginal cost in equilibrium.
B. downward-sloping demand curve and price exceeds marginal cost in equilibrium.
C. horizontal demand curve and price equals marginal cost in equilibrium.
D. downward-sloping demand curve and price equals marginal cost in equilibrium.


Answer: B

Economics

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