Which of the Following Is True of Firms in Both

question 195

Multiple Choice

Which of the following is true of firms in both monopolistic competition and perfect competition?

• A)Firms face a horizontal demand curve.
• B)Price exceeds marginal revenue.
• C)Firms can enter and leave the industry with relative ease.
• D)Price exceeds marginal cost.
• E)Products are differentiated.

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Definitions:

Net Property

This term typically refers to the net book value of a company's property, plant, and equipment (PP&E) after accounting for depreciation and amortization.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its loss of value over time.

Historical Cost

is the original monetary value of an asset or investment at the time of its acquisition, without adjustments for inflation or market fluctuations.

Common-Size Balance Sheet

A financial statement that presents all items as percentages of a common base figure rather than absolute numerical figures, facilitating comparison.