American Military University ECON 201 ECON201 WEEK
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Question 1 
Monopolistic competition is an industry characterized by a: 
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A. small number of firms producing identical products, with barriers to entry for firms. 
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B. small number of firms producing similar products, with relatively easy entry for firms. 
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C. large number of firms producing similar products, with relatively easy entry for firms. 
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D. large number of firms producing identical products, with relatively easy entry for 
firms. 
Answer Key:C 
Question 2 
Imperfect co...