All of the Following Statements,except One,are Correct About a Firm

question 72

Multiple Choice

All of the following statements,except one,are correct about a firm operating under conditions of either monopolistic competition or oligopoly.Which is the exception?

• A)Graphically,it faces a downward-sloping demand curve.
• B)It charges a price above marginal cost in both the short run and the long run.
• C)It charges a price equal to average cost in both the short run and the long run.
• D)It fails to achieve economic efficiency.
• E)It fails to achieve productive efficiency.

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Definitions:

Consequential Damages

Damages that arise not directly from a breach of contract but as a foreseeable result of the breach, such as lost profits or additional operational costs.

Prima Facie

A term from Latin meaning "on its face" or "at first sight"; in legal contexts, it refers to evidence that, unless rebutted, would be sufficient to prove a particular proposition or fact.

Consumer Goods

Items that are bought for personal or household use rather than for manufacturing or reselling purposes.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to fulfill a contractual obligation.