Answer Happy

Which of the following statements about monopolistic competition
is FALSE?
a.
A firm faces a downward-sloping demand curve for its
product.
b.
A firm can raise its product price by a small amount and lose
some but not all of its buyers, because of product
differentiation.
c.
A firm engages in nonprice competition as well as price
competition.
d.
A firm can earn an economic profit in the long run.