Which characteristic of a monopolistically competitive firm is also a characteristic of a perfectly competitive firm?
A) easy entry into and exit from the market
B) ability to set prices as a result of some market power
C) downward-sloping demand and marginal revenue curves
D) product differentiation

Question

Quizplus · Accepted Answer

Both monopolistically competitive and perfectly competitive firms experience easy entry into and exit from the market, allowing for many firms to participate and leave as economic conditions change.

Which Characteristic of a Monopolistically Competitive Firm Is Also a Characteristic