中等econ-u05-d03
Monopolistic competition is characterised by:
A. Many firms, differentiated products and free entry in the long run✓ 答案
B. One firm with entry blocked by patents
C. Identical products with all firms price takers
D. High barriers to entry and one dominant seller
解說
It sits between perfect competition and monopoly: many sellers, but product differentiation gives each firm a downward-sloping demand curve. Free entry and exit push long-run profit to normal.