What is one difference between a firm in a perfectly competitive industry and a firm in a monopolistically competitive industry?
A) A monopolistically competitive firm does not face a downward-sloping demand curve.
B) A monopolistically competitive firm faces competition from firms producing close substitutes.
C) A monopolistically competitive firm is guaranteed to make more than normal profits in the long run.
D) A monopolistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue.
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