9) Which of the following statements is not true about monopolistic competition in comparison to a perfectly competitive market? O Firms do not have market power in either of the two market structures. O There are many firms in both market structures. Firms operating in a monopolistically competitive market make both output and pricing decisions while those in a perfectly competitive markets choose only the output level. O Firms in both market structures make zero economic profits in the long run.

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
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9) Which of the following statements is not true about monopolistic competition in comparison to a perfectly competitive market?
O
Firms do not have market power in either of the two market structures.
There are many firms in both market structures.
Firms operating in a monopolistically competitive market make both output and pricing decisions while those in a perfectly competitive markets
choose only the output level.
Firms in both market structures make zero economic profits in the long run.
Too
Transcribed Image Text:9) Which of the following statements is not true about monopolistic competition in comparison to a perfectly competitive market? O Firms do not have market power in either of the two market structures. There are many firms in both market structures. Firms operating in a monopolistically competitive market make both output and pricing decisions while those in a perfectly competitive markets choose only the output level. Firms in both market structures make zero economic profits in the long run. Too
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