For the Monopolistic Competitor, Which of the Following Is INCORRECT

question 70

Multiple Choice

For the monopolistic competitor, which of the following is INCORRECT?

• A) Because the firm is not a perfect competitor, its demand curve slopes downward.
• B) The marginal revenue curve is downward sloping and lies below the demand curve.
• C) The profit-maximizing rate of output arises at the point at which the marginal cost curve intersects the marginal revenue curve.
• D) If the firm in a monopolistically competitive industry were making economic losses, new firms will enter the industry.

---

Definitions:

Startup Stage

The early phases in the life cycle of a business where it is developing its product, market, and operations, often characterized by uncertainty and high risk.

Nascent Stage

The early development phase of a project or company, often characterized by high uncertainty and risk.

Entrepreneurial Transition

The process or phase where an entrepreneur or business undergoes significant change, often towards growth or diversification.

Probable Crisis

A situation or a series of events that is likely to lead to an unstable and dangerous situation affecting an individual, group, community, or the whole society.