Monopolistic and Perfect Competition Are Alike in That

question 66

Multiple Choice

Monopolistic and perfect competition are alike in that:

• A) a firm's long-run equilibrium output is located where long-run average total cost is increasing.
• B) a firm's long-run equilibrium output is located where long-run average total cost is minimized.
• C) firms earn a normal rate of return in the long run.
• D) firms are price takers.

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Definitions:

Trading Investments

Trading Investments refer to securities bought and held primarily for selling them in the short term to profit from price fluctuations.

Other Revenue

Revenue from sources other than the primary operating activity of a business.

Subsidiary Company

The corporation that is controlled by a parent company.

Controlling Company

A business entity that holds a significant amount of voting stock in another company, giving it control over its operations and policies.