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1. The characteristic that distinguishes a perfectly competitive market from a monopolistically competitive market is
a. ease of entry.
b. large number of firms.
c. degree of government regulation.
d. product differentiation.
e. market share.
2. Which of the following statements concerning market structure is not true?
a. A market structure is a model.
b. Competition occurs only under the conditions of perfect competition and monopolistic competition.
c. Few industries fit neatly into one market structure or another.
d. When analyzing the behavior of firms, economists assume that a firm participates in one of the four market structures.
e. Conduct predicted by market-structure models provides insight into the real-life behavior of firms.
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