Monopolistically competitive firm sets price-marginal cost

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Reference no: EM13998893

1. Consumers are always better off if a market is monopolistically competitive rather than perfectly competitive because of greater product variety.

2. A monopolistically competitive firm sets price above marginal cost.

3. A monopolistically competitive market has conditions that allow relatively free entry and exit.

4. A monopolistically competitive market consists of firms selling goods that are distinct yet highly substitutable.

Which of these statements is NOT TRUE?

A. 1

B. 2

C. 3

D. 4

E. 1 & 2

F. 2 & 4

Reference no: EM13998893

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