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AyeeThats Larah
on Nov 26, 2024

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Monopolistically competitive and purely competitive industries are similar in that

A) both are assured of short-run economic profits.
B) both produce differentiated products.
C) the demand curves facing individual firms are perfectly elastic in both industries.
D) there are few, if any, barriers to entry.

Economic Profits

The net amount remaining when all costs, both obvious and not, are subtracted from the total income.

Differentiated Products

are goods or services that are distinguishable from each other on the basis of quality, features, or branding, leading to non-price competition among firms.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price, represented graphically as a horizontal line.

  • Recognize similarities and differences between monopolistic competition and other market structures.
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JB
Jabriyah BrownDec 01, 2024
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