All of the following characterize both perfectly competitive and monopolistically competitive markets EXCEPT:* 1 point Price is equal to average revenue. Firms can affect the selling price of their product. Individual firms produce output where marginal cost equals marginal revenue. The market has a large number of firms. Firms can easily enter or exit the market.
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In a perfectly competitive market, firms are price takers, meaning they cannot influence the market price and must accept the price determined by the overall market supply and demand. Price is equal to average revenue, and firms produce where marginal cost equals Show more…
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