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.

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Definitions:

Formalization

The extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated in an organization.

Bureaucratic Aspects

Features relating to the system of administration characterized by strict policies, procedures, and hierarchy intended for efficient organization.

Simple Design

A configuration involving one or two ways of specializing individuals and units.

Rational

Based on logic or reason; characterized by the ability to think clearly, logically, and analytically.