Which of the Following Statement(s) Is/are TRUE

question 37

Multiple Choice

Which of the following statement(s) is/are TRUE?
I. Because monopolistically competitive firms sell differentiated products, their demand curves are downward sloping.
II. Monopolistically competitive firms earn above-normal profits because of high entry barriers.
III. As firms enter a monopolistically competitive industry, the demand curves of the existing firms shift down and to the left.

• A) I and III only
• B) I and II only
• C) II only
• D) III only

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Definitions:

New-product Development

It refers to the complete process of bringing a new product or service to market, including idea generation, concept testing, design, development, and marketing.

Customers

Individuals or organizations that purchase goods or services for personal use or to fulfill their own business needs.

Suppliers

Businesses or individuals that provide goods or services to another company under a contract or agreement.

Nontraditional Firms

Companies that operate in non-conventional ways, often challenging established norms and practices in their industry.