Answer to Question #163382 in Microeconomics for Amanda

Question

Which one of the following is not a characteristic of monopolistic competition

A. There is easy entry and exit into the market

B. Firms may earn an economic profit in the short run

C. There is product differentiation.

D. Firms set the price of their product equal to their marginal cost

Answer 1

There is low entry and exit barries at monopolistic competition.

Therefore, the correct answer is A.