Question 62Asked in DSSSB TGT Computer Science (Technical), 8 Aug 2021, Shift 2
Which of the following statement is NOT correct regarding monopolistic competition?
AThe marginal revenue is slightly less than average revenue
BThe goods produced by them are not homogeneous
CThe demand cure faced by the firm is horizontal
DThe market structure of the firm allows for new firms to enter the market
Show answerHide answer
Correct answer: (C) The demand cure faced by the firm is horizontal
Explanation
In monopolistic competition, products are differentiated, so each firm faces a downward-sloping demand curve. A horizontal demand curve belongs to perfect competition.
From DSSSB TGT Computer Science PYQ (Technical), 8 Aug 2021, Shift 2