Which of the Following Statements Is Correct

question 253

Multiple Choice

Which of the following statements is correct?

• A) Firms in monopolistic competition and monopoly can earn economic profits in both the short run and the long run.
• B) Both perfectly competitive and monopolistically competitive firms charge a price equal to marginal cost.
• C) Firms in perfect competition, monopolistic competition, and monopoly maximize profits by producing where marginal revenue equals marginal cost.
• D) Both perfectly competitive and monopolistically competitive firms produce the welfare-maximizing level of output.

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