Which of the Following Is True for Perfect Competition, Monopolistic

question 115

Multiple Choice

Which of the following is true for perfect competition, monopolistic competition, and monopoly?

• A) The product of all firms is homogeneous.
• B) Firms will earn zero economic profits in the long run.
• C) Short-run profits are maximized when marginal cost equals marginal revenue.
• D) All of the above.

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Definitions:

Division of Labor

The allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.

Coordinating Mechanisms

Methods or systems used within an organization to align activities, tasks, and functions towards achieving common objectives.

Decentralization

The process of distributing or delegating power and decision-making authority away from a central authority to more local or individual actors within the organization.

Subunits

Components or sections of an organization that operate semi-independently as part of the whole, often with specific functions or goals.