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:

Fraud

Wrongful or criminal deception intended to result in financial or personal gain.

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though the parties involved did not enter into a contractual agreement.

Restitution

A legal principle requiring a party to return or compensate for any loss or harm they have caused to another.