Which of the Following Is TRUE

question 146

Multiple Choice

Which of the following is TRUE?

• A) All markets should be oligopolies because that is the most efficient market structure.
• B) Monopolistic competition results in excess capacity, since in the long run the point where MR = MC is to the right of the minimum of the ATC curve.
• C) In monopolistic competition firms earn large economic profits in the long run.
• D) In monopolistic competition firms earn zero economic profits in the long run.

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Definitions:

Inferential Statistics

Inferential Statistics involves methods that allow the extrapolation from samples to make inferences about the larger population from which the sample was drawn.

Inferential Statistics

Statistical methods used to draw conclusions or inferences about a population based on a sample.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data.