Which of the following is true of a typical firm in a monopolistically competitive industry?
A) All firms have identical cost structures.
B) Product differentiation allows a successful firm to emerge as a market leader in the industry.
C) Each firm acts independently.
D) The more successful firms have an incentive to merge in order to exert greater market power.
C
Economics
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The higher the transaction cost of an exchange, the lower the probability of the exchange taking place between the buyer and the seller
Indicate whether the statement is true or false
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A positive economic profit signals that the investors of a firm should divert their funds to alternative ventures
a. True b. False Indicate whether the statement is true or false
Economics