Which of the Following Statements Is FALSE Concerning Monopolistic Competition

question 310

Multiple Choice

Which of the following statements is FALSE concerning monopolistic competition?

• A) There are many firms.
• B) Firms sell a differentiated product.
• C) There are no barriers to entry.
• D) Monopolistically competitive firms are price takers because of product differentiation.

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to external parties.

Net Income

The net income of a company following the deduction of all expenses, taxes, and costs from its total revenue.

Assets

Resources owned by a business that have economic value and can be used to meet debts, commitments, or facilitate operations.

Rent Expense

The cost incurred by a business for leasing a property or equipment, recognized as an expense in the income statement.