Which Statement Concerning Monopolistic Competition Is False

question 153

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

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Definitions:

Asthma

A chronic inflammatory disorder of the airways that causes episodes of wheezing, breathlessness, chest tightness, and coughing.

Bronchi

The major air passages of the lungs that diverge from the windpipe, transmitting air in and out of the lungs.

Wheezing

A high-pitched whistling sound made while breathing, often associated with respiratory illness or asthma.

Pyothorax

The accumulation of pus in the pleural cavity between the lung and the chest wall, often due to infection.