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Consider Monopoly, Monopolistic Competition, and Perfect Competition

Question 418

Multiple Choice

Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm experience zero economic profit?


A) perfect competition only
B) perfect competition and monopolistic competition only
C) perfect competition, monopolistic competition, and monopoly
D) The answer cannot be determined without knowing whether the market is in the long run or short run.

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