Which of the Following Statements Is Not Correct

question 70

Multiple Choice

Which of the following statements is not correct?

• A) Both monopolistically competitive and perfectly competitive firms can earn economic profits in the short run.
• B) Both monopolies and monopolistically competitive firms can earn economic profits in the long run.
• C) Firms in perfect competition, monopolistic competition, and monopoly maximize profits by producing where marginal revenue equals marginal cost.
• D) Only competitive firms produce the welfare-maximizing level of output.

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Definitions:

Make Living

involves earning enough income through work or business to cover personal and family expenses.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Focuses

Refers to the central points of interest or activity, or the act of directing attention and resources towards specific goals.

Specific Plans

Detailed outlines or proposals designed to achieve particular goals or objectives through defined steps and actions.