Which of the following is true for both perfect and monopolistic competition?
A. Firms produce a differentiated product.
B. Firms face a downward sloping demand curve.
C. Firms produce a homogeneous product.
D. There is freedom of entry and exit in the long run.
Answer:D
Which of the following is true for both perfect and monopolistic competition?
A. Firms produce a differentiated product. B. Firms face a downward sloping demand curve. C. Firms produce a homogeneous product. D. There is freedom of entry and exit in the long run.