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Commerce · Q1486

Economics

Graduate and Post Graduate · Commerce · question 1486

Q1486

Which of the following feature is common to both, perfectly competitive markets and monopolistically competitive markets?

A.
Firms produce homogeneous goods
B.
Prices are equal to marginal
C.
Long-run profits are zero
Answer
D.
Prices are above marginal cost in the long run

Answer: Option C

Solution

Answer: Option C
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