Hi sir
In this question why does the question assumes monopolistic competition. As all of the features in question are similar in perfect competition
It has downward sloping demand curve, many competitors, zero economic profit in long run
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This is because firms in perfect competition face a horizontal demand curve (perfectly elastic) and not downward sloping. Firms in perfect competition are price takers and hence can sell any quantity at the prevailing price. They do not have to reduce prices to sell extra units, whereas in monopolistic competition, you would have to reduce the prices.
Hence these characteristics are of monopolistic competition.
Ooh i knew that
But i forgot idk how.
But Thanks a lot
Now it seems obvious
You’re welcome!