Which statement is true?

Question

Quizplus · Accepted Answer

All the statements accurately describe characteristics of monopolistic competition. A) Firms in monopolistic competition can break even in the long run due to the entry of new competitors. B) They do not operate at peak efficiency because they do not produce at the minimum of the average cost curve. C) They can influence their prices due to product differentiation, even though this influence is relatively small compared to a monopoly. D) Their demand curves are not perfectly elastic because of product differentiation, but they are more elastic than those of a monopolist due to the availability of close substitutes.

Which Statement Is True