Which of the Following Are True? the Similarities Between Perfect

question 52

Multiple Choice

Which of the following are true? The similarities between perfect competition and monopolistic competition include: (1) no barriers to entry.
(2) profit-maximizing output occurs where MC = MR.
(3) long-run economic profit equals zero.

• A)(1)only
• B)(2)only
• C)(1)and (2)only
• D)(2)and (3)only
• E)(1), (2),and (3)

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Definitions:

Measuring Efficiency

The process of evaluating the performance of a system, organization, or component by comparing its output with its input.

Variable Cost System

An accounting approach where costs that vary directly with the level of output are only recorded as product costs, contrasting with full costing methods.

Manufacturing Cost

The total expense involved in the production of goods, including materials, labor, and overhead costs.

Normal Standards

Predetermined benchmarks or criteria that are set to measure efficiency or performance levels in various business operations.