The shape and/or slope of the marginal revenue curve under monopolistic competition, assuming a linear market demand, is:
A) horizontal B) vertical C) U-shaped D) upward-sloping E) downward-sloping and twice as steep as the market demand curve
Similarly, monopolistic competition is like monopoly in that:
A) neither industry has high barriers to entry B) both industries represent price-taking firms C) price changes are dictated by changes in supply D) both industries have high barriers to entry E) both industries represent price-making firms.