Which of the following is not true about a monopolistic competitor?
A. It charges a higher price than a perfectly competitive firm, ceteris paribus.
B. It produces less output than a perfectly competitive firm, ceteris paribus.
C. It can earn economic profits in the long run.
D. It maximizes profit at the point where MC = MR.
Answer: C
You might also like to view...
Investment is defined as
A) the purchase of a stock or bond. B) the purchase of new capital goods by firms. C) spending on capital goods by governments. D) what consumers do with their savings. E) financial capital.
Real world economic data supports the view that higher interest rates are associated with ________
A) higher saving and consumption B) lower saving and higher consumption C) higher saving and lower consumption D) lower saving and consumption
The cost disease of services explains the problems surrounding the health-care crisis.
Answer the following statement true (T) or false (F)
In general, the demand curve facing the monopolistically competitive firm is more elastic than the demand curve facing the monopoly.
Answer the following statement true (T) or false (F)