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Industries that are made up of many competing producers, each selling a differentiated product, and whose firms eventually earn zero economic profits in the long run areA. Perfectly competitiveB. OligopoliesC. Monopolistically competitiveD. Monopolies
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- Which of the following is not an assumption that economists make when using the model of perfect competition? a. The products of each firm in a particular market are identicalb. There is easy entry and exit.c. Each firm sets its price equal to its average total costd. Firms seek to maximize profits
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- In monopolistic competition:A. There is free entry and exit in the long runB. Each firm produces a standardized productC. There are barriers to entryD. There are few producers