Perfect competition and many differentiated sellers are similar in that both:
A) have firms that tend to break even in the long run.
B) have strong barriers to the entry of new firms.
C) have firms producing slightly different products.
D) have firms that use non-price competition.

Question

Quizplus · Accepted Answer

In both perfect competition and monopolistic competition (many differentiated sellers), firms tend to break even in the long run due to the entry and exit of firms in response to profits or losses.

Perfect Competition and Many Differentiated Sellers Are Similar in That