Which Statement Concerning Monopolistic Competition Is False

question 125

Multiple Choice

Which statement concerning monopolistic competition is false?

• A) Long-run equilibrium under monopolistic competition is achieved where economic profits are zero.
• 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 monopolistic firm.
• D) Monopolistic competition does not lead to any economic inefficiency since firms in this industry cannot sustain economic profits.

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