One of the ways in which monopolistic competitors differ from perfect competitors is that
A)perfect competitors produce the quantity of output at which marginal revenue equals marginal cost and monopolistic competitors do not.
B)perfect competitors produce a homogeneous product and monopolistic competitors do not.
C)there is easy entry and exit for a perfect competitor, but not for a monopolistic competitor.
D)there are high barriers to entry and exit for a perfect competitor, but not for a monopolistic competitor.

Question

Quizplus · Accepted Answer

Perfect competitors produce a homogeneous product, which means that every firm's product is identical to every other firm's product. Conversely, monopolistic competitors produce a differentiated product, meaning that each firm's product is slightly different from other firms' products in terms of quality, design, or other characteristics.

One of the Ways in Which Monopolistic Competitors Differ from Perfect