A monopolistically competitive firm is like an oligopolistic firm insofar as
A) both face perfectly elastic demand.
B) both can earn an economic profit in the long run.
C) both have MR curves that lie beneath their demand curves.
D) neither is protected by high barriers to entry.

Question

Quizplus · Accepted Answer

Both monopolistically competitive and oligopolistic firms have marginal revenue (MR) curves that lie beneath their demand curves due to their downward-sloping demand curves.

A Monopolistically Competitive Firm Is Like an Oligopolistic Firm Insofar