Which of the Following Statements Is False

question 184

Multiple Choice

Which of the following statements is false?

• A)A price searcher must lower price to sell an additional unit of its product.
• B)For a price searcher, price equals marginal revenue for all units except the first.
• C)For a price searcher, price is greater than marginal revenue for all units except the first.
• D)A price searcher, like a price taker, produces that quantity of output for which marginal revenue equals marginal cost.

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Definitions:

Monopolistically Competitive

refers to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and promotional differentiation.

Fixed Costs

Costs that do not change in total amount with a change in business activity level, such as rent or salaries.

Short Run

The short run in economics is a period during which at least one input, like plant size, is fixed and cannot be changed.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.