Which One of the Following Statements Is TRUE for Both

question 272

Multiple Choice

Which one of the following statements is TRUE for both perfect competition and monopolistic competition?

• A) Each type of firm faces a downward sloping demand curve.
• B) Each type of firm produces a homogeneous product.
• C) In the long run, firms in both industries make zero economic profit.
• D) Each type of firm competes on product quality and price.

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Definitions:

Primary Component

The most essential or chief element that plays a central role in the system or structure it is part of.