For the Monopolistic Competitor, Which of the Following Is INCORRECT

Multiple Choice

For the monopolistic competitor, which of the following is INCORRECT?

A) Because the firm is not a perfect competitor, its demand curve slopes downward.
B) The marginal revenue curve is downward sloping and lies below the demand curve.
C) The profit-maximizing rate of output arises at the point at which the marginal cost curve intersects the marginal revenue curve.
D) If the firm in a monopolistically competitive industry were making economic losses, new firms will enter the industry.