Which of the following statements are true? i. Monopolistically competitive markets have high selling costs. ii. Monopolistically competitive markets sell homogeneous goods. iii. Any firm can start a business in a monopolistically competitive market.

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Only (i) and (iii) Explanation: • Statement (i): Goods are substantially distinctive (by branding, quality, or design); enterprises must spend heavily on advertising and promotions (selling expenses) to draw consumers away from rivals. • Statement (iii): There is freedom of entry and exit in this market system, meaning any new firm can start a business without experiencing severe economic or legal barriers.

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