Which of the following is a key difference between firms in a perfectly competitive industry and firms in a monopolistically competitive industry?
a) A monopolistically competitive firm does not face entry from other firms.
b) A monopolistically competitive firm does not have the exact same product as other firms.
c) A monopolistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue.
d) A monopolistically competitive industry does not have a large number of sellers.
Answer: b) A monopolistically competitive firm does not have the exact same product as other firms.
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