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Which of the Following Is True About Monopolistic Competition but False

Question 27

Multiple Choice

Which of the following is true about monopolistic competition but false about perfect competition?


A) There are a large number of independently acting sellers.
B) There are no barriers to entry.
C) Firms can make an economic profit in the short run.
D) Firms compete on their product's price as well as its quality and marketing.
E) Firms cannot make an economic profit in the long run.

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