Multiple Choice
Which statement concerning monopolistic competition is false?
A) Long-run equilibrium under monopolistic competition and pure competition both entail zero economic profits for firms.
B) Monopolistic competition is likely to result in a greater variety of product brands than pure competition.
C) The monopolistically competitive demand curve is more elastic than the demand curve facing a monopoly.
D) Long-run equilibrium in monopolistic competition does not entail any economic inefficiency because of easy entry and exit.Topic: Product Variety
Correct Answer:
Verified
Correct Answer:
Verified
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