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