Which of the Following Statements Is True

question 91

Multiple Choice

Which of the following statements is true?

• A)Monopolistic competitive firms do not experience the law of diminishing marginal returns when they produce output.
• B)Monopolistic competitive firms face a downward-sloping demand curve and a horizontal marginal cost curve.
• C)There are many buyers and few sellers in the theory of monopolistic competition.
• D)Monopolistic competitors are said to underutilize their present plant size.
• E)none of the above

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Bay Of Pigs

A failed military invasion of Cuba in 1961 by Cuban exiles, sponsored by the U.S. government, aiming to overthrow Fidel Castro's government.

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.

Bad Decisions

Choices or judgments that lead to undesirable outcomes due to flawed reasoning or poor judgment.