Perfect competition and monopolistic competition are similar in that firms in both types of market structure will
A) act as price takers.
B) produce a level of output where price equals marginal cost.
C) earn zero profit in the long run.
D) act as price setters.
C
You might also like to view...
In an open economy, if domestic citizens decide to save more, then the domestic real interest rate will ________ and the level of capital investment in the country will ________, holding other factors constant.
A. decrease; increase B. increase; increase C. increase; decrease D. decrease; decrease
Which of the following is not a characteristic of the monopolistic competition market structure?
a. Many sellers, each small in size relative to the overall market. b. Few sellers. c. Differentiated product. d. Easy, low-cost entry and exit.
An increase in price will cause a firm's total revenue to increase if demand is price elastic
a. True b. False Indicate whether the statement is true or false
When an increase in a network's membership increases the product's value to users, there are
a. network externalities. b. economies of scale. c. natural monopolies. d. diminishing costs.