A Monopoly Differs from Monopolistic Competition in That

Multiple Choice

A monopoly differs from monopolistic competition in that

A) a monopoly has market power while a firm in monopolistic competition does not have any market power.
B) a monopoly can never incur a loss, but a firm in monopolistic competition can.
C) in a monopoly there are significant entry barriers, but there are low barriers to entry in a monopolistically competitive market structure.
D) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.