Which of the following could be true of perfect competition but not of monopoly?
a. The government licenses production of the good to a few firms.
b. The government grants a patent for the good.
c. A firm can earn economic profit in the long run.
d. If price falls below average variable cost, it pays to shut down.
e. There are no barriers to entry.
E
You might also like to view...
Which of the following was not a cause of the Great Recession?
a. Deregulating nationally chartered banks but not state-chartered banks. b.Government incentives to increase home ownership. c. Government encouragement of creative home-buying strategies. d. Relaxation of bank underwriting standards. e. All of the above were causes of the Great Recession.
Official reserve assets are
A. government T-bills and T-bonds. B. government holdings of SDR's. C. money-like assets that are held by governments and that are recognized by governments as fully acceptable for payments between them. D. the gold holdings of the country's households and businesses.
Which of the following would be classified as a public good?
A. Internet service subscription B. police protection C. telephone service D. state lotteries
The entry of new firms into a monopolistically competitive industry will cause the long-run equilibrium price to rise.
Answer the following statement true (T) or false (F)