A Significant Difference Between Perfect Competition and Monopolistic Competition Is

Multiple Choice

A significant difference between perfect competition and monopolistic competition is that

A) a perfectly competitive firm is a price searcher, while a monopolistic competitive firm is a price taker.
B) a perfectly competitive firm faces a downward-sloping demand curve, while a monopolistic competitive firm faces a perfectly elastic demand curve.
C) a perfectly competitive firm sells a homogeneous product, while a monopolistic competitive firm sells a differentiated product.
D) a perfectly competitive firm sets price above marginal cost, while a monopolistic competitive firm sets price equal to marginal cost.