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Chapter 6 Competitive Markets After reading Chapter 6, C OMPETITIVE M ARKETS , you should be able to: • List and explain the characteristics of Perfect Competition and Monopolistic Competition • Explain why a perfectly competitive firm cannot set its own price and must charge the market price.
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... followed by a perfectly competitive firm but not by a monopoly. C) followed by all types of firms. D) not followed by a monopoly, because it would reduce economic profit to zero. 8.