1. All of the following are characteristics of monopolistic competition EXCEPT

A) price searcher.
B) many sellers.
C) easy entry and exit.
D) no barriers to entry.
E) economic profit = 0 in the LR.

2. Which of the following entities would be closest to being a monopolistically competitive firm?

A) local farmer.
B) city electric company.
C) fast food franchise.
D) mom and pop clothing store.
E) gasoline producer.

3. Monopolistically competitive firms

A) never advertise.
B) advertise only on a local basis.
C) advertise on a national basis.
D) earn economic profits > 0 in the LR.
E) sell identical products.