Which of the Following Statements Is Always True

question 143

Multiple Choice

Which of the following statements is always true?

• A) -1 ≤ PEi) ≤ 1
• B) PA) = 1 - A^c)
• C) PA) + PB) = 1
• D) ∑P ≥ 1

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess earnings over the next best alternative.

Monopolistic Competition

A trading structure inhabited by many corporations pushing products that are analogous but not carbon copies, which affords them a degree of control over the market.

Differentiated Products

Goods that are fundamentally similar but are distinguished from each other by characteristics like quality, branding, and features.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and the absence of barriers to entry or exit.