Which Statement Concerning Monopolistic Competition Is False

question 50

Multiple Choice

Which statement concerning monopolistic competition is false?

• A) In the long run P = ATC > MC.
• B) Firms may experience losses in the short run.
• C) Firms differentiate their products, but the products are relatively substitutable.
• D) Firms may experience positive economic profits in the long run.

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Definitions:

Overtime

Additional hours worked by an employee beyond their standard working hours, often compensated at a higher rate.

FICA-OASDI Payable

The amount owed by employers and employees for Social Security taxes, as mandated by the Federal Insurance Contributions Act (FICA), specifically for Old Age, Survivors, and Disability Insurance (OASDI).

FICA-Medicare Payable

This refers to the portion of FICA taxes collected from employees' wages and salaries that is allocated to cover Medicare expenses, a mandatory financial obligation for employers.

Federal Income Tax Payable

The amount of income tax a company or individual owes to the federal government, yet to be paid.