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Question
Which of these feature's is found in both a perfectly competitive market and a monopolistically competitive market?
Options
No restriction on entry and exit
Imperfect knowledge
Homogeneous goods
Presence of selling costs
Solution
No restriction on entry and exit
Explanation:
Firms can enter and quit both perfectly competitive and monopolistically competitive markets without constraint. This means that new firms can freely enter the market and established firms can quit without significant challenges, ensuring that both types of marketplaces remain competitive.
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