Multiple Choice
Which one of the following statements is TRUE for both perfect competition and monopolistic competition?
A) Each type of firm faces a downward sloping demand curve.
B) Each type of firm produces a homogeneous product.
C) In the long run, firms in both industries make zero economic profit.
D) Each type of firm competes on product quality and price.
Correct Answer:
Verified
Correct Answer:
Verified
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