Firms in Monopolistic Competitive Industries

Multiple Choice

Firms in monopolistic competitive industries:
I. sell their products at a higher price than if their industry were strictly competitive.
II. sell their products at the same price as if they were in a monopoly market.
III. have a high incentive to innovate with new products and better quality.

A) I and II only
B) II and III only
C) I and III only
D) I, II, and III