Which of the Following Is FALSE About a Comparison Between

question 22

Multiple Choice

Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?

• A) A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve.
• B) In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits.
• C) Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run.
• D) In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve.

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Definitions:

Superior Performance

Refers to achieving better than average outcomes and results in a given field or for a specific task compared to competitors or previous benchmarks.

Successful Implementation

Achieving desired outcomes and meeting predefined goals through careful execution of a plan or project.

Organizational Goals

Specific objectives set by a business to guide and motivate employees towards achieving the organization's long-term vision.

Financial Targets

Financial targets refer to specific financial goals or benchmarks that a company aims to achieve, such as revenue, profit margins, or return on investment.