Question 26: The demand curve of a monopolistically competitive firm is horizontal. True Or False Question 27: Because of barriers to entry into monopolistically competitive market, there are long-run economic profits. True Or False Question 28: As a group, oligopolists are better-off collectively if they behave like a monopoly to: A) limit production and increase prices. B) limit production and decrease prices. C) increase production and decrease prices. D)increase production and increase prices Question 29: Which of the following is true for monopolistic competition except? A) Profit maximizing condition MR MC . B) P>MC. C)Profit maximizing condition P MR MC D)P>MR