Which of the Following Statements Is Not True Regarding a Monopolistically

question 99

Multiple Choice

Which of the following statements is not true regarding a monopolistically competitive firm in the short run?

• A)Advertising may enable the firm to charge a higher price than that charged by rival firms.
• B)The firm may be able to earn a normal profit, earn an economic profit, or incur an economic loss.
• C)Entry into the market is fairly easy.
• D)Profits will be maximized at the point at which price equals marginal cost.
• E)It faces a negatively-sloped demand curve.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Implied Claims

Statements or messages that are suggested indirectly in communication, rather than being explicitly stated.

Bait-and-Switch Advertising

A deceptive marketing strategy where a product is advertised at a low price to lure customers, who are then persuaded to buy a more expensive item.

Product Benefit

The positive outcomes or advantages that a consumer can expect to gain from using a product.