Problem: For each of the given statements, recognize the type of market it describes. Use an example from the readings or the internet for each characteristic and explain your choice.
1. The company practices product differentiation
2. The firm earns an economic profit in the long run
3. Maximizes profits by equating MC and MR
4. Has demand curve that is downward sloping
5. Is in a market where new firms can enter the industry selling similar products