Question

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.

Answer 1

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