In perfect competition as well as in monopolistic competition,
A)marginal revenue is equal to price for each firm.
B)profit is positive in a long-run equilibrium for each firm.
C)entry and exit by firms are restricted.
D)there are many firms in a single market.

Question

Quizplus · Accepted Answer

In both perfect competition and monopolistic competition, there are many firms in the market. However, marginal revenue equals price only in perfect competition, not in monopolistic competition. Profit is zero in the long run for both, and entry and exit are not restricted.

In Perfect Competition as Well as in Monopolistic Competition