Multiple Choice
Which of the following is NOT a true statement about perfectly competitive and monopolistically competitive firms?
A) Both monopolistically competitive and perfectly competitive firms have perfectly elastic demands.
B) In the long run, only monopolistically competitive firms have excess capacity.
C) Perfectly competitive firms produce at their efficient scale.
D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.
Correct Answer:

Verified
Correct Answer:
Verified
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