Which of the Following Is True Under Monopolistic Competition in the Long

question 132

Multiple Choice

Which of the following is true under monopolistic competition in the long run?

• A) Profits are always zero.
• B) P > MC.
• C) P = MR.
• D) All of the choices are true in monopolistic competition.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into an equivalent number of fully completed units to accurately measure inventory and cost of goods sold.

Weighted-Average Method

A method of costing inventory that determines the cost of goods sold and the closing inventory by averaging the cost of all items available for sale throughout the period.

Ending Inventory

The worth of merchandise on hand for purchase at the conclusion of a financial period.

Equivalent Units

Equivalent units are a calculation in process costing that converts partially completed units into a number of equivalent fully completed units.