Which of the Following Statements Is Correct

question 325

Multiple Choice

Which of the following statements is correct?

• A) Firms in monopolistic competition and monopoly can earn economic profits in both the short run and the long run.
• B) Both perfectly competitive and monopolistically competitive firms are price takers.
• C) Both a monopolistically competitive industry and a monopoly are characterized by a very small number of (or one) firm(s).
• D) Firms can easily enter a perfectly competitive or monopolistically competitive industry.

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