Which of the Following Is False

question 61

Multiple Choice

Which of the following is false?

• A)Long-run equilibrium in monopolistic competition results in zero economic profits.
• B)Monopolistic competitor's demand curves are likely to be more elastic than those of monopolists.
• C)Monopolistic competition results in a greater variety of products than perfect competition.
• D)Monopolistic competition's zero economic profit long-run equilibrium is efficient, like the zero profit equilibrium in perfect competition.
• E)None of the above are false.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

Cost Function

A mathematical representation that describes how the costs incurred by a firm relate to its level of output or production.

Cartel Arrangement

An agreement among competing firms to control prices or exclude entry of new competitors in a market, often to maximize their profits illegally.

Manufacturing Plant

A facility where raw materials are transformed into finished products through various processes and machinery, typically involving assembly lines and specialized equipment.