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      Question

      Pick out the wrong

      statement.
      A Heterogenous and differentiated form of a commodity is noticed in monopolistic competition Correct Answer Incorrect Answer
      B Different trade marks are used in monopolistic competition Correct Answer Incorrect Answer
      C Different prices prevail for the same basic product Correct Answer Incorrect Answer
      D Sellers in monopolistic competition mutually agree to charge a common price Correct Answer Incorrect Answer

      Solution

      Sellers in monopolistic competition mutually agree to charge a common price - This statement is incorrect. Monopolistic competition is characterized by a number of sellers offering similar but not identical products, thus there is no mutual agreement to charge a common price.

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