Which of the following statements is false?
A)The monopolistic competitor is a price searcher.
B)The monopolistic competitor produces an output at which price is greater than marginal cost.
C)The demand curve facing a monopolistic competitor is less elastic than the demand curve facing a monopolist.
D)There are many substitutes in a monopolistic competitive industry.

Question

Quizplus · Accepted Answer

The demand curve facing a monopolistic competitor is more elastic than the demand curve facing a monopolist because there are many close substitutes in a monopolistically competitive market, making it easier for consumers to switch to other products.

Which of the Following Statements Is False