Which One of the Following Statements Is TRUE for Both

question 272

Multiple Choice

Which one of the following statements is TRUE for both perfect competition and monopolistic competition?

• A) Each type of firm faces a downward sloping demand curve.
• B) Each type of firm produces a homogeneous product.
• C) In the long run, firms in both industries make zero economic profit.
• D) Each type of firm competes on product quality and price.

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Definitions:

Firms

Business organizations or entities that sell goods or services, usually in pursuit of profit.

Hourly Wage Rate

The amount of money paid to an employee for one hour of work.

Production Technology

The methods, equipment, and processes used to produce goods and services, including advancements that improve efficiency and productivity.

Hourly Wage Rate

The rate of pay given to employees per hour worked, often used to calculate earnings for part-time or casual work.