Which of the Following Is the Most Accurate Description of Industries

question 76

Multiple Choice

Which of the following is the most accurate description of industries?

• A) A monopolistically competitive industry is more competitive than any other industry form.
• B) Monopolies are more competitive than monopolistically competitive firms.
• C) Monopolistically competitive firms are located between monopoly and perfect competition.
• D) All firms can make a long-run economic profit,but only perfect competitors can make a short-run profit.
• E) All firms engage in short-run loss minimization by selecting the point where marginal revenue equals price.

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Definitions:

Saving

The act of setting aside money for future use, reducing current consumption.

Induced Consumption

Consumer spending that increases or decreases as a result of changes in income, as opposed to autonomous consumption that does not change with income.

Disposable Income

Income available to a household or individual after taxes have been paid, available for spending or saving.

Autonomous Consumption

The level of spending on goods and services that occurs even when income is zero, representing non-discretionary, baseline consumption.