1. Firms in monopolistic competition are only going to make what profit in the long run?
- Normal profit
- Abnormal profit
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2. Given the product differentiation, it should be clear that firms in monopolistic competition compete through ?
- Non-price competition
- Price competition
3. Which of these is NOT a characteristic of monopolistic competition
- Firms are price takers
- Many small buyers and sellers with a small market share
- Non-homogeneous products
- Low barriers to entry and exit
- Good knowledge
4. In monopolistic competition, the demand curve is ?
- Relatively inelastic
- Perfectly elastic
- Relatively elastic
- Perfectly inelastic
5. Allocative efficiency is being achieved
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