In both monopolistically competitive and perfectly

93) In both monopolistically competitive and perfectly competitive industries
A) firms are price takers.
B) there are many buyers and sellers.
C) firms produce products for which there are no close substitutes.
D) there are high barriers to entry.
Answer: B
93)
Diff: 1 Page Ref: 443/443
Topic: Comparing Perfect Competition and Monopolistic Competition
Learning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison to
other market conditions
AACSB: Reflective Thinking
94) In the long run firms in both monopolistically competitive markets and perfectly competitive
markets earn zero economic profits, but unlike perfectly competitive firms in the long run,
monopolistically competitive firms
94)
Diff: 1 Page Ref: 444/444
Topic: Comparing Perfect Competition and Monopolistic Competition
Learning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison to
other market conditions
AACSB: Reflective Thinking
95) Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive
firm is
95)
Diff: 2 Page Ref: 444/444
Topic: Comparing Perfect Competition and Monopolistic Competition
Learning Outcome: Micro 15: Discuss the role of differentiation in monopolistic competition in comparison to
other market conditions
AACSB: Reflective Thinking
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