Multiple Choice
Which of the following is a characteristic of both perfect competition and monopolistic competition?
A) The firm seeks to differentiate its product from those of its competitors.
B) Firms sell a homogeneous product.
C) In the long run, the firm will produce the output which minimizes average total cost.
D) In the long run, the firm will earn zero economic profit.
Correct Answer:

Verified
Correct Answer:
Verified
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