Which statement concerning monopolistic competition is false?
A. In the long run P = AC > MC.
B. Firms may experience positive economic profits in the long run.
C. Firms may experience losses in the short run.
D. Firms differentiate their products, but the products are relatively substitutable.
Answer: B
You might also like to view...
To enter a local cable television market, a firm needs a license from the city government. This is an example of
A) a natural monopoly. B) the government maintaining consistent standards in the broadcast industry. C) a government-imposed barrier. D) occupational licensing.
One reason why we might want to impose restrictions on free trade is to protect infant domestic industry in the formative stages of development and thus unable to compete yet on world markets
a. True b. False Indicate whether the statement is true or false
During a period when new entrants are being attracted to an industry, we would expect that: a. economic profits are positive
b. as a result, economic profits are falling. c. as a result, economic profits are rising. d. both (a) and (b) are true.
The long run is a period of:
A. at least one year. B. sufficient length to allow a firm to expand output by hiring additional workers. C. sufficient length to allow a firm to alter its plant size and capacity and all other factors of production. D. sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.