Which of the Following Is Correct

question 206

Multiple Choice

Which of the following is correct?

• A) A firm in monopolistic competition does not have excess capacity in the long run.
• B) A firm in perfect competition operates at maximum average total cost in the long run.
• C) In the long run, a firm in monopolistic competition maximizes its profit at a point where price is equal to average total cost but the average total cost is not minimized.
• D) In the long run, a firm in monopolistic competition makes zero economic profit and its price is equal to the minimum average total cost.
• E) In the long run, a firm in monopolistic competition can make an economic profit because of product differentiation.

Discuss the impact of environmental forces on marketing decisions and how they may be influenced by marketers.

Elaborate on the benefits of effective marketing for different stakeholders in a free-enterprise society.

Understand the concept and implications of substituted agreements in contract law.

Comprehend the process and effect of discharging contracts either through judgment or mutual agreement.

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Definitions:

Perpetual Inventory System

An inventory accounting method where updates are made continuously to the inventory account as sales or purchases occur.

Gross Method

An accounting practice where purchase discounts are not taken into account in the inventory cost until they are actually realized.

Merchandise Inventory

The total value of a company's goods that are ready for sale to customers at any given time, including products bought for resale.

Accounts Payable

Liabilities representing amounts owed by an entity to suppliers or creditors for goods or services received but not yet paid for.