Choose the Correct Statement About Firms in Monopolistic Competition

question 45

Multiple Choice

Choose the correct statement about firms in monopolistic competition.

• A)All firms make positive economic profit.
• B)The price is set equal to marginal cost to achieve maximum economic profit.
• C)Price is lower than in perfect competition.
• D)Production always takes place at minimum average total cost.
• E)The price is always greater than the marginal cost.

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Definitions:

Breadwinner

The primary income earner in a household, responsible for supporting the financial needs of the family.

Peer Group

People who are similar in age, social status, and interests.

Social Status

Refers to the relative rank or position that an individual holds in a society, influenced by wealth, occupation, education, and other factors.

Traditional Gender Roles

The societal norms dictating the types of behaviors which are generally considered acceptable, appropriate, or desirable for people based on their sex.