Which of the Following Is Not True About a Monopolistic

question 3

Multiple Choice

Which of the following is not true about a monopolistic competitor?

• A)It maximizes profit at the point where MC = MR.
• B)It produces less output than a perfectly competitive firm,ceteris paribus.
• C)It charges a higher price than a perfectly competitive firm,ceteris paribus.
• D)It can earn economic profits in the long run.

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Definitions:

Need for Affiliation

An individual's desire to form or maintain interpersonal relationships or to be part of a group.

Senior Executive

A high-ranking position within an organization responsible for making major decisions, typically part of the company's top management.

Two-factor Theory

A psychological theory suggesting that there are separate sets of factors that cause job satisfaction and job dissatisfaction; introduced by Frederick Herzberg.

Method Bound

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