What is the main difference between a perfectly competitive industry and a monopolistically competitive industry? Select one: a. zero economic profit expected in the long run b. the number of firms in the market c. no barriers to entry d. product differentiation

What is the main difference between a perfectly competitive industry and a monopolistically competitive industry? Select one: a. zero economic profit expected in the long run b. the number of firms in the market c. no barriers to entry d. product differentiation

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

ChapterP3: Market Structure

Section: Chapter Questions

Problem 8KC

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Question

What is the main difference between a perfectly competitive industry and a monopolistically competitive industry?

Select one:

a. zero economic profit expected in the long run

b. the number of firms in the market

c. no barriers to entry

d. product differentiation

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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