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.
Correct Answer:
Verified
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