Monopolistically competitive firms are similar to perfectly competitive firms in that they...

a.Face a downward sloping demand curve for their product.

b.Experience no barriers to entry and exit.

c.Operate at the minimum of their ATC curve.

d.Sell an identical product to their competitors.

_____ deals with how well an economy's goods are used.

a.Equanimity.

b.Efficiency.

c.Effervescence.

d.Equity.

Economists like to analyse perfectly competitive markets because they...

a.Portray a cautionary tale of inefficient resources allocation.

b.Provide a benchmark to which other market structures can be compared.

c.Are a realistic representation of what most markets are like.

d.Show how strategic interdependence is an important factor in firms' decisions.