Monopolistically competitive firms, like gas stations, are similar to perfectly competitive firms, like almond growers, because both industries: have a small number of producers. produce differentiated products. have free entry and exit in the long run. have barriers to entry.
Monopolistically competitive firms, like gas stations, are similar to perfectly competitive firms, like almond growers, because both industries: have a small number of producers. produce differentiated products. have free entry and exit in the long run. have barriers to entry.
Chapter9: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 3SQ
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Transcribed Image Text:Monopolistically competitive firms, like gas stations, are similar to perfectly competitive firms, like almond
growers, because both industries: have a small number of producers. produce differentiated products.
have free entry and exit in the long run. have barriers to entry.
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