Long-run economic profits are most likely to be earned in
A) perfect competition and oligopoly.
B) perfect competition and monopoly.
C) monopoly and oligopoly.
D) oligopoly and monopolistic competition.
E) perfect competition and monopolistic competition.
C
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Which of the following assumptions is TRUE about monopolistic competition?
A) The firm's products are differentiated. B) There are few producers of the product. C) Firms will not advertise. D) It is difficult for firms to enter this industry.
In a perfectly competitive industry, assume the short-run average total cost increases as the output of the industry expands. In the long run, the industry supply curve will:
A. have a positive slope. B. have a negative slope. C. be perfectly horizontal. D. be perfectly vertical.
Price-discriminating firms charge higher prices to those who
A. Have greater incomes. B. Have many substitutes available to them. C. Want the product less. D. Have lower price elasticities of demand.
All of the following are keys to economic development EXCEPT
A. minimizing "creative destruction." B. open economies. C. establishment of a system of property rights. D. an educated workforce.