Which of the following is not true about a monopolistic competitor?
A. It charges a higher price than a perfectly competitive firm, ceteris paribus.
B. It produces less output than a perfectly competitive firm, ceteris paribus.
C. It can earn economic profits in the long run.
D. It maximizes profit at the point where MC = MR.
Answer: C
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Which of the following statements is incorrect?
a. The Federal Reserve Open Market Committee determines fiscal policy actions for the Congress. b. The Board of Governors of the Federal Reserve is appointed, not elected. c. The Federal Reserve System was designed to be independent of the executive branch of the government. d. The chairman of the Board of Governors serves a four-year term. e. The Federal Reserve districts are distributed geographically to serve the particular interests of each region.
A monopolist's profit per unit is shown by the difference between price and marginal cost per unit
a. True b. False Indicate whether the statement is true or false