Which of the Following Statements Is True

question 132

Multiple Choice

Which of the following statements is true?

• A)The perfectly competitive firm produces a level of output at which P=MC.
• B)The single-price monopolist produces a level of output at which P > MC.
• C)The perfectly price-discriminating monopolist produces a level of output at which P>MC.
• D)a and b
• E)all of the above

---

Definitions:

Gallons

A unit of volume measurement used primarily in the United States, defined as 231 cubic inches or approximately 3.785 liters.

Ambrosia

In classical mythology, the food of the gods, which conferred immortality; in general usage, something very pleasing to taste or smell.

Plowshares

Metal blades fitted to a plow, used in farming to cut through the soil.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than other entities, leading to more efficient economic exchanges.