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Which of the following is true for both perfect competition and monopolistic competition?

The correct answer is C. Marginal revenue is equal to marginal cost. Both, monopoly and perfect competition, maximize profits when firms produce the output level at which marginal revenue equals marginal cost (MR=MC).

Which of the following is true for both perfect competition and monopoly quizlet?

Which of the following is true for both monopolistically competitive and perfectly competitive firms? Economic profit is zero in the long run. Zero: firms enter the industry and drive down the price until economic profit is zero.

What does monopolistic competition have in common with perfect competition?

The similarity between monopolistic competition, pure monopoly, and perfect competition is that they follow the same profit maximization rule. Firms in each of the aforementioned market structures maximize their profits by setting their marginal revenue equal to their marginal cost.

What is the similarity between perfect competition and monopolistic competition quizlet?

One major similarity between perfect competition and monopolistic competition is that: the firms just break even in the long run.