A Monopolistically Competitive Market Is Like Both a Competitive Market

question 578

Multiple Choice

A monopolistically competitive market is like both a competitive market and a monopoly in that firms in all three market structures

• A) can earn economic profits in the short run.
• B) can earn economic profits in the long run.
• C) charge a price above marginal cost.
• D) All of the above are correct.

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Definitions:

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