Which of the following statements is not correct? Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs in the long run Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry. Monopolistic competition is similar to perfect competition because both market structures are characterized by long run normal profits. Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers. All of the answers are correct.
Which of the following statements is not correct? Monopolistic competition is similar to monopoly because in each market structure the firm can charge a price above marginal costs in the long run Monopolistic competition is similar to perfect competition because both market structures are characterized by free entry. Monopolistic competition is similar to perfect competition because both market structures are characterized by long run normal profits. Monopolistic competition is similar to perfect competition because both market structures are characterized by many sellers. All of the answers are correct.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 9SQ
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Transcribed Image Text:Which of the following statements is not correct?
Monopolistic competition is similar to monopoly because in each market structure
the firm can charge a price above marginal costs in the long run
Monopolistic competition is similar to perfect competition because both market
structures are characterized by free entry.
Monopolistic competition is similar to perfect competition because both market
structures are characterized by long run normal profits.
Monopolistic competition is similar to perfect competition because both market
structures are characterized by many sellers.
All of the answers are correct.
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