Which of the Following Statements Is FALSE

question 163

Multiple Choice

Which of the following statements is FALSE?

• A) A perfectly competitive market produces more output and charges a lower price than a monopoly.
• B) A perfectly competitive firm produces where MR = MC but a monopoly produces where MR > MC.
• C) In a perfectly competitive market, the price is equal to the marginal cost, but in a market with a single-price monopoly, price exceeds marginal cost.
• D) The consumer surplus is smaller for a market with a monopoly than for a perfectly competitive market.
• E) In the long run, a monopoly can earn a larger economic profit than can a perfectly competitive firm.

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Definitions:

Wood

A hard, fibrous structural material produced by trees and other plants, used in construction, furniture, and as a fuel source.

Direct Materials

Raw materials that can be directly attributed to the production of a specific product.

Factory Overhead

Costs associated with operating a manufacturing facility that are not directly tied to a specific unit of production, such as maintenance and utilities.

Receiving Report

A document completed by the recipient of goods or services, detailing the quantities and condition of the items received.