Consider the following statements Consumers are always bette

Consider the following statements: Consumers are always better off if a market is monopolistically competitive rather than perfectly competitive because of greater product variety. A monopolistically competitive firm sets price above marginal cost. A monopolistically competitive market has conditions that allow relatively free entry and exit. A monopolistically competitive market consists of firms selling goods that are distinct yet highly substitutable. Which of these statements is not true?

Solution

I. consumers are always better of if a market is monopolistically competitive rather than perfectly competitive because of greater product variety. true or false