Multiple choice

Which of the following statements is incorrect?

  1. Even monopolist can earn losses.

  2. Firms in a perfectly competitive market are price takers.

  3. It is always beneficial for a firm in the perfectly competitive market to discriminate prices.

  4. Economic laws are less exact than the laws of physical sciences.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The question asks for the INCORRECT statement. In perfect competition, firms are price takers and CANNOT practice price discrimination - all units must sell at market price. Statement C incorrectly suggests it's beneficial to discriminate in perfect competition, which is impossible.

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