Which of the Following Statements Regarding a Competitive Market Is

question 5

Multiple Choice

Which of the following statements regarding a competitive market is not correct?

• A)There are many buyers and many sellers in the market.
• B)Because of firm location or product differences, some firms can charge a higher price than other firms and still maintain their sales volume.
• C)Price and average revenue are equal.
• D)Price and marginal revenue are equal.

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Definitions:

Amendment

A formal change or addition proposed or made to a law, contract, constitution, or other legal document.

Incorporation Theory

Incorporation theory is a legal doctrine in the United States that applies the protections of the Bill of Rights to the states through the Fourteenth Amendment's Due Process Clause.

Due Process Clause

A legal principle assuring fair treatment through the judicial system, especially as outlined in the Fifth and Fourteenth Amendments of the U.S. Constitution.

Liberties

The fundamental rights and freedoms protected from infringement by the government, including speech, religion, and assembly.