A significant difference between monopoly and perfect competition is that:
A. profits are driven to zero in a monopolized industry but may be positive in a competitive industry.
B. free entry and exit is possible in a monopolized industry but impossible in a competitive industry.
C. competitive firms control market supply, but monopolies do not.
D. the monopolist's demand curve is the industry demand curve, whereas the competitive firm's demand curve is perfectly elastic.
Answer: D
You might also like to view...
Technological advancements have led to lower prices and an increase in the sale of color laser printers. How does this affect the market for laser printer ink cartridges?
A) The demand curve for laser printer ink cartridges shifts to the left. B) The quantity of laser printer ink cartridges demanded increases. C) The demand curve for laser printer ink cartridges shifts to the right. D) The quantity of laser printer ink cartridges demanded decreases.
If oil is considered a non-renewable resource, than oil is a. an unlimited resource
b. a scarce resource. c. not a productive resource. d. has no opportunity cost.
If resources A and B are complementary and employed in fixed proportions:
A. a change in the price of A will have no effect on the quantity of B employed. B. an increase in the price of A may either increase or decrease the demand for B. C. an increase in the price of A will increase the demand for B. D. an increase in the price of A will decrease the demand for B.
Which of the following types of shareholders can be categorized under institutional investors?
A. Inventory suppliers B. Traders C. Blockholders D. Insurance companies