In which of the following ways is a monopolistically competitive firm l ike a monopoly firm?
A. Firms face a horizontal demand curve.
B. Firms earn economic profits greater than zero in the long run.
C. Firms face a downward sloping demand curve.
D. Firms face competition from many other firms.
Answer:C
In which of the following ways is a monopolistically competitive firm l ike a monopoly firm?
A. Firms face a horizontal demand curve. B. Firms earn economic profits greater than zero in the long run. C. Firms face a downward sloping demand curve. D. Firms face competition from many other firms.