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Subject - Economics:

Microeconomics

MCQ - 89-4099

Question:

Which is true of monopolistic competition?

  1. Firms earn long-run economic profits.
  2. P = MR = MC = ATC.
  3. Firms spend money to differentiate and advertise their products.
  4. P = MR = MC = ATC.
  5. Excess capacity is eliminated in the long run.

Correct Answer: C

Explanation:

With product differentiation, monopolistically competitive firms spend money to promote their product as different from the others.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Which is true of monopolistic competition? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 89-4099.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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