Which of the Following Is NOT a True Statement About

question 244

Multiple Choice

Which of the following is NOT a true statement about perfectly competitive and monopolistically competitive firms?

• A) Both monopolistically competitive and perfectly competitive firms have perfectly elastic demands.
• B) In the long run, only monopolistically competitive firms have excess capacity.
• C) Perfectly competitive firms produce at their efficient scale.
• D) There are a large number of firms in both monopolistically competitive and perfectly competitive markets.