Which of the Following Is (Are) True

question 81

Multiple Choice

Which of the following is (are) true?

• A) According to the text, perfect competition is a goal toward which an economy should strive.
• B) Monopolistic competition results in excess capacity, since in the long run MR = MC to the left of the minimum of the ATC curve.
• C) One might characterize monopolistic competition as an industry, such as gasoline stations, which in the long run experiences economic profits.
• D) All of the above are true.

Identify cases where government intervention in monopolies raises or lowers social welfare.

Analyze the rationale behind public ownership of monopolies and its effects on market efficiency and social welfare.

Understand the basic principles of a perfectly competitive market.

Analyze the relationship between marginal revenue, average revenue, and total revenue in competitive markets.

---

Definitions:

Store Chemicals

The process or facility for safely keeping and managing chemicals, ensuring they are preserved correctly and pose no risks.

Store Narcotics

Safely securing opiate drugs to prevent misuse or theft, often in accordance with legal and professional guidelines.

Strong Acids

Highly corrosive acids that completely dissociate in water, characterized by a high hydrogen ion concentration.

Track Inventory

The process of monitoring and managing items in stock to ensure adequate supply without overstocking.