119k views
1 vote
Monopolistic competition is similar to monopoly because

A. in both industry​ structures, there are barriers to entry.
B. in both industry​ structures, the firm's demand curve is downward sloping.
C. both industry structures have many sellers.
D. in both industry​ structures, long minus run profits will be equal to zero.

1 Answer

3 votes

Answer:

B. in both industry​ structures, the firm's demand curve is downward sloping.

Step-by-step explanation:

Both firm types have a downward sloping demand curve which indicates that as price is increased, quantity demanded falls.

Monopolistic competition have no barriers to entry while a monopoly does.

Monopolistic competition have many sellers while a monopoly has one seller.

Monopolistic competition break even in the long run while monopoly maintain super normal profits in the long run

User Ben Johnson
by
8.0k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.