Which One of the Following Statements Is NOT True

question 156

Multiple Choice

Which one of the following statements is NOT true?

• A) The classical model assumes that people suffer from money illusion.
• B) The classical model assumes that people are motivated by self-interest.
• C) The classical model assumes that pure competition exists.
• D) The classical model assumes that no single seller of a commodity can affect its price.

---

Definitions:

Financial Advantage

The benefit or upper hand that a business or individual gains by optimizing financial decisions and resource allocations to enhance wealth or profitability.

Profitable Product

A product that generates more revenue than the costs associated with producing and selling it.

Variable Costs

Expenses that fluctuate with changes in production volume or business activity levels.

Special Order

An order for goods or services that is outside the company's normal production or service offerings, often requiring special pricing or terms.