question 10\nboth perfectly competitive and monopolistically competitive firms\na) will earn normal economic…

question 10\nboth perfectly competitive and monopolistically competitive firms\na) will earn normal economic profit in the long run\nb) face no barriers to entry or exit\nc) rely on extensive advertising\nd) slightly differentiate their products\ne) possess patents and trademarks for their products

question 10\nboth perfectly competitive and monopolistically competitive firms\na) will earn normal economic profit in the long run\nb) face no barriers to entry or exit\nc) rely on extensive advertising\nd) slightly differentiate their products\ne) possess patents and trademarks for their products

Answer

Brief Explanations:

In perfect competition and monopolistic competition, there are no barriers to entry or exit. In the long - run, new firms can enter if there are profits or existing firms can exit if there are losses. Firms in perfect competition produce identical products and don't rely on extensive advertising, and they don't have product differentiation or patents. Monopolistically competitive firms have slightly differentiated products and may use advertising, but the key commonality is the lack of entry/exit barriers.

Answer:

B. face no barriers to entry or exit