Which of the following statements are true aboutbothmonopolistic competitionandmonopoly?Check all that apply.Explanation:A monopolistically competitive market is characterized by (1) many sellers, (2) product differentiation, and (3) easy entry and exit.Under monopolistic competition, many firms compete for the same set of customers. Each firm produces a product that is at least somewhatdifferentiated from those of other firms, while entry in the market is easy.Because of these characteristics, monopolistically competitive firms resemble monopolists in that they arenotprice takers. Rather, they facedownward-sloping demand curves for their product; thus, the profit-maximizing price is always above marginal cost (), which impliesthat monopolistically competitive firms allocate resources inefficiently. However, profit for monopolistic competitors, unlike for monopolies, isdriven to zero in the long run, as demand for each firm's product adjusts with the entry and exit of other firms until price equals average totalcost.Firms earn zero profit in the long run.Firms can earn positive profit in the long run.Price is above marginal cost.Firms are not price takers.P>MC Show
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Which of the following statements is true for both monopolistically?Which of the following statements is true for both monopolistically competitive and oligopolistic industries? Firms have some degree of control over prices.
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Which of the following statement is true for both a monopolistically competitive?
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