In a perfectly competitive market, firms face no barriers to entry or exit. a. true b. false

Letter a is correct. Monopolistic competition is similar to monopoly because both market structures are characterized by firms being price makers rather than price takers.

Explanation:

A monopoly is an economic situation whose main characteristic is imperfect competition, that is, only one company owns a market for a particular good or service and for this reason is able to influence the price of that good or service for its own benefit.

Monopolistic competition resembles monopoly in that it is characterized by business competition for similar but not equal products, so they are also capable of making the price, since similar products sold on the market cannot be considered perfect substitutes.