Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.
• B) A perfectly competitive market produces more output and charges a lower price than a monopoly.
• C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost.
• D) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC.
• E) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market.

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Definitions:

Activation-Synthesis Theory

The idea that dreams are the result of the brain’s attempts to make sense of random brain activity by combining the activity with stored memories.

Stage 2 Sleep

Second stage of sleep, where a person is truly asleep; EEGs show K-complexes and sleep spindles, and there is much less conscious awareness of both the external world and inner mental activity.

K-Complexes

K-Complexes are a type of brainwave pattern seen on an EEG, typically associated with stage 2 sleep, characterized by a brief upsurge in brain activity.

EEGs

Short for Electroencephalograms, these are tests that measure electrical activity in the brain.