The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-Which of the following is not true of monopolistic competition?

A) There are a large number of buyers and sellers.
B) The firms produce differentiated products.
C) There exists free entry and exit of firms.
D) Each of the firms faces a horizontal demand curve.
E) Each of the firms acts as a mini monopoly in the market.