Which statement concerning monopolistic competition is false?
A. In the long run P = AC > MC.
B. Firms may experience positive economic profits in the long run.
C. Firms may experience losses in the short run.
D. Firms differentiate their products, but the products are relatively substitutable.
Answer: B
Economics
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In the above figure, suppose the economy is at point a. If there is an increase in real GDP, there is a movement to point such as
A) b. B) c. C) d. D) e.
Economics
Compared to corporations, businesses that are proprietorships
A) are far more numerous. B) account for a larger percentage of the economy's total revenue each year. C) can raise capital more cheaply. D) All of the above are correct answers.
Economics