Which of the Following Statements Is Not Correct

question 110

Multiple Choice

Which of the following statements is not correct?

• A)The typical monopolistically competitive firm could reduce its average total cost if it produced more output.
• B)Monopolistically competitive firms advertise in order to increase the elasticity of the demand curve they face.
• C)Expensive advertising might help consumers if it is a signal that the product is good.
• D)Brand names acquired at great cost might help consumers by assuring quality.

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Definitions:

Plate Tectonics

A scientific theory explaining the movement of the Earth's lithosphere, which is divided into tectonic plates, over the more fluid asthenosphere.

Asthenosphere

The highly viscous, mechanically weak, and ductilely-deforming region of the upper mantle of the Earth, which lies just below the lithosphere.

Plate Boundary

The region where two tectonic plates meet, which can be characterized by seismic activity, mountain building, and volcanic eruptions.

Divergent Plate Boundary

A boundary where tectonic plates are moving away from each other, often resulting in the creation of new crust as magma rises and solidifies.