Which One of the Following Is True for Perfect Competition,monopolistic

question 16

Multiple Choice

Which one of the following is true for perfect competition,monopolistic competition,and single-price monopoly?

• A)Each firm produces an identical good.
• B)Each firm makes zero long-run economic profit.
• C)The profit maximizing quantity occurs at the quantity at which MC = MR.
• D)Easy entry and exit.
• E)None of the above.

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Definitions:

EAR

stands for Effective Annual Rate, a calculation that reflects the annual interest on an investment or loan, taking into account the effect of compounding interest.

APR

Annual Percentage Rate, which represents the annualized cost of credit including interest and other charges, helping consumers compare the cost of loans.

Continuous Compounding

Continuous compounding refers to the process of calculating interest on an investment, where the interest amount is reinvested and earns additional interest continuously, leading to exponential growth.

Sharpe Ratio

A metric used to assess the risk-adjusted return of an investment portfolio.