Which Statement Is TRUE

question 206

Multiple Choice

Which statement is TRUE?

• A)All markets should be oligopolies because that is the most efficient market structure.
• B)Monopolistic competition results in excess capacity since,in the long run,the point where MR = MC is to the right of the minimum of the ATC curve.
• C)In monopolistic competition,firms earn large economic profits in the long run.
• D)In monopolistic competition,firms earn zero economic profits in the long run.

---

Definitions:

Stanford Achievement Test

A standardized test designed to measure the academic performance of students in various subjects.

Reaction Time

The duration it takes for an individual to respond to a specific stimulus.

Language Ability

The capacity to understand, produce, and use words and sentences to communicate effectively.

Personality Testing

Tests in the affective realm used to assess habits, temperament, likes and dislikes, character, and similar behaviors. Types of personality tests include interest inventories, objective personality tests, and projective personality tests.