单选题 Which of the following is least accurate regarding product development and marketing for firms under monopolistic competition?

A、 Firms that bring new and innovative products to the market face relatively more elastic demand curves than their competitors.
B、 Relative to other types of competition, product innovation is critical to the pursuit of economic profits.
C、 Advertising is necessary to communicate the uniqueness of the firm"s products relative to its competitors.

【正确答案】 A

【答案解析】Firms under monopolistic competition face less elastic demand curves when they introduce new and innovative products. This enables them to increase price and earn economic profits. However, close substitutes and imitations will eventually erode the economic profit from a new product. So, firms must constantly seek innovative product features that make their products relatively more desirable than their competitors.