Which Statement Is TRUE

question 228

Multiple Choice

Which statement is TRUE?

• A) For choosing the profit-maximizing quantity,the short-run decision-making process of a firm in perfect competition is the same as that of a firm in monopolistic competition since they produce so that P > MC.
• B) In the long run in perfect competition,economic profits equal zero,and in the long run in monopolistic competition,economic profits are very large.
• C) In perfect competition,P = MC,and in monopolistic competition,MR = MC,but P > MC and there is excess capacity.
• D) In both perfect competition and monopolistic competition,P equals minimum average total cost in the long run.

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Definitions:

Tropopause

The boundary in the Earth's atmosphere between the troposphere and the stratosphere, where temperature begins to increase with altitude.

Gaseous Biogeochemical Cycles

The circulation of chemical elements like carbon and nitrogen through the atmosphere, involving exchanges between living organisms and physical processes.

Carbon Dioxide

A gas devoid of color and smell, produced from the burning of carbon-containing compounds and the act of breathing. Naturally found in the environment, it is essential for plant photosynthesis.

Atmosphere

The layer of gases surrounding the Earth that is held in place by gravity and is composed of nitrogen, oxygen, and trace gases.