Respuesta :
Answer:
1) many buyers and sellers, (2) free entry and exit
Explanation:
A monopolistic competition is when there are many buyers and sellers of heterogeneous goods and services. There are free entry of firms into and out of the industry. Firms set the price for their products. Buyers and sellers do not have perfect information. In the long run, monopolistic competition make zero economic profit.
A pure competition is characterised by many buyers and sellers of homogenous goods and services. Buyers and sellers have perfect information. There are no barriers to entry or exit of firms in the industry. Market price is set by the market forces. Firms make zero economic profit in the long run.
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A monopolistic and perfect competition are characterized by :
- Many buyers and sellers.
- Free entry and exit.
What is monopolistic competition?
A monopolistic competition is when there are many buyers and sellers of heterogeneous goods and services. There are free entry of firms into and out of the industry.
Firms set the price for their products. Buyers and sellers do not have perfect information. In the long run, monopolistic competition make zero economic profit.
A pure competition is characterized by many buyers and sellers of homogenous goods and services. Buyers and sellers have perfect information.
Also, there are no barriers to entry or exit of firms in the industry. Market price is set by the market forces. Firms make zero economic profit in the long run.
Learn more about monopolistic and perfect competition here : https://brainly.com/question/24877850
