Which of the Following Is (Are) True

question 211

Multiple Choice

Which of the following is (are) true?

• A) When choosing the profit-maximizing quantity, the short-run decisionmaking process for a firm in perfect competition and a firm in monopolistic competition is the same, since they produce the quantity where MR = MC.
• B) In the long run in perfect competition economic profits = 0, and in monopolistic competition in the long-run economic profits are = 0.
• C) In perfect competition P = MC and in monopolistic competition, MR = MC, but P > MC and there is excess capacity.
• D) All of the above are true.

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