为什么这个不是perfect competition？

问题如下：

QuestionIf a firm encounters numerous competitors, a downward-sloping demand curve for its products, and zero economic profits in the long run, which characteristic is it least likely to possess?

选项：

A.No pricing power

B.Low barriers to entry

C.Differentiated product

解释：

1. In the context of monopolistic competition, firms encounter many competitors and generally have limited pricing power due to the downward-sloping demand curve. While they may offer differentiated products through advertising and non-price strategies, they still maintain some level of pricing power. However, the ease of entry into the market results in zero economic profits in the long run

2. Incorrect. "Low barriers to entry"&"Product differentiation" are characteristics of monopolistic competition.

• describe characteristics of perfect competition, monopolistic competition, oligopoly, and pure monopoly