Which of the Following Is (Are) True

question 81

Multiple Choice

Which of the following is (are) true?

• A) According to the text, perfect competition is a goal toward which an economy should strive.
• B) Monopolistic competition results in excess capacity, since in the long run MR = MC to the left of the minimum of the ATC curve.
• C) One might characterize monopolistic competition as an industry, such as gasoline stations, which in the long run experiences economic profits.
• D) All of the above are true.

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Definitions:

Machinery

Physical assets used in a business operation to manufacture or produce goods.

Gain on Disposal

Gain on disposal refers to the financial profit made from selling an asset for more than its carrying amount on the books.

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Book Value

The book value of an asset is its value on a balance sheet, calculated by subtracting any depreciation, amortization, or impairment costs from its original cost.