Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A)A millionaire definitely receives less utility from an additional dollar than a poor person.
• B)A poor person definitely receives less utility from an additional dollar than a rich person.
• C)A millionaire definitely receives the same utility from an additional dollar as a poor person.
• D)A millionaire generally receives less utility from an additional dollar than a poor person.
• E)We do not know if any of the statements are true or false, because we do not know how much utility one person receives relative to another.

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Definitions:

Pure Monopoly

A market structure where a single supplier provides a unique product or service with no close substitutes, controlling the entire market.

Oligopoly

A market structure characterized by a small number of firms controlling a large majority of the market share, often leading to limited competition.

Monopolistic Competitive

A market structure characterized by many firms selling products that are substitutes but differentiated from one another, leading to non-price competition.

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed by a firm.