Which of the Following Is True for Perfect Competition but Not

question 128

Multiple Choice

Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?

• A) MC = MR
• B) P = MC
• C) Positive long run profits
• D) P = MC and positive long run profits

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Definitions:

Price Levels

A broad measurement of the current price average for goods and services in the economy.

Purchasing-Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach, to assess the relative value of currencies.

Money Supply Growth

Money supply growth refers to the rate at which the quantity of money available in an economy increases over a specific period.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another's, not adjusted for inflation differences between the two countries.