Which of the Following Is Not True of a Monopolistically

question 82

Multiple Choice

Which of the following is not true of a monopolistically competitive firm?

• A) The firm will maximize profits by producing where MR = MC.
• B) The firm will not likely earn an economic profit in the long run.
• C) The firm will shut down if price is less than average variable cost.
• D) The firm will produce an efficient quantity where average total cost is minimized.

---

Definitions:

Foreign Currency Fluctuations

Changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending.

Global Financial Impact

The effect of financial events or trends around the world on economies, markets, and individual financial status.

Health and Wellness

An active process of becoming aware of and making choices toward a healthy and fulfilling life, encompassing physical, mental, and social well-being.

Communication Strategies

Plans of action designed to convey information effectively to a target audience.