Final answer:
The short-run graph for a monopolistically competitive firm is not identical to the graph for a monopoly due to the difference in the steepness of their demand curves.
Step-by-step explanation:
The student asked if the short-run graph for a monopolistically competitive firm is identical to the graph for a monopoly.
The correct answer is false.
While both monopolies and monopolistically competitive firms face downward-sloping demand curves, there's a key difference in how steep those curves are.
A monopoly faces the market demand curve and can sell more output only by decreasing the price it charges.
In contrast, the demand curve that a monopolistically competitive firm faces is not as steep because there are many firms offering similar but not identical products, which provides consumers with alternatives.
Thus, monopolistically competitive firms have some degree of price-setting power, but not as much as a monopolist. Since the demand curves they face are different, their short-run graphs are not identical.