Which of the following statements is FALSE?
A) In pure competition buyers do not have to absorb the additional cost of nonprice competition.
B) Sellers earn no economic profit over the long run in pure competition and monopolistic competition.
C) Easy entry into the market is found in pure competition and monopolistic competition, but not in oligopoly and monopoly.
D) Over the long run, a seller operates at minimum long-run average total cost in pure competition and monopolistic competition.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms often do not operate at minimum long-run average total cost due to product differentiation and nonprice competition, which can lead to excess capacity and higher average costs compared to pure competition.

Which of the Following Statements Is FALSE