Which of the Following Statements Is Not Correct

question 110

Multiple Choice

Which of the following statements is not correct?

• A)The typical monopolistically competitive firm could reduce its average total cost if it produced more output.
• B)Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face.
• C)Expensive advertising might help consumers if it is a signal that the product is good.
• D)Brand names acquired at great cost might help consumers by assuring quality.

---

Definitions:

Date of Record

The specific date on which a company determines the eligible shareholders for receiving dividends or other corporate distributions.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the total number of shares owned by shareholders.

Par Value

Refers to the nominal or face value of a bond, stock, or coupon as stated by the issuer.

Prior Period Adjustments

Corrections of errors in financial statements of previous periods or adjustments due to changes in accounting policies, applied retrospectively.