Which of the following do firms in many differentiated sellers and perfect competition not have in common?
A) there are few barriers to entry
B) there are a large number of sellers
C) both use non-price competition
D) in the long run firms in both tend to break even

Question

Quizplus · Accepted Answer

In perfect competition, firms do not use non-price competition because products are homogeneous, whereas in differentiated markets, firms often use non-price competition to distinguish their products.

Which of the Following Do Firms in Many Differentiated Sellers