In a Monopolistically Competitive Industry, Which of the Following Statements

Multiple Choice

In a monopolistically competitive industry, which of the following statements is TRUE?
I. Firms produce identical products.
II. There are significant barriers to entry.
III. Firms consider the production decisions of their rivals when setting output levels.
IV. Firms act like monopolies by producing where marginal revenue equals marginal cost.

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