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Which of the Following Statements Is Not Correct

Question 423

Multiple Choice

Which of the following statements is not correct?


A) Firms in monopolistic competition and monopoly can earn economic profits in the short run.
B) Firms in monopolistic competition and perfect competition produce the welfare-maximizing level of output.
C) Monopolistically competitive firms price above marginal cost, whereas competitive firms price at marginal cost.
D) Firms wishing to enter a monopolistically competitive market can do so freely, whereas firms wishing to enter a monopoly market will face barriers.

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