Which of the following statements is true?
A)Monopolistic competitive firms do not experience the law of diminishing marginal returns when they produce output.
B)Monopolistic competitive firms face a downward-sloping demand curve and a horizontal marginal cost curve.
C)There are many buyers and few sellers in the theory of monopolistic competition.
D)Monopolistic competitors are said to underutilize their present plant size.
E)none of the above

Question

Quizplus · Accepted Answer

Monopolistic competitors are said to underutilize their present plant size because they produce at a point where marginal cost is less than price.

Which of the Following Statements Is True