Multiple Choice
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.
Correct Answer:
Verified
Correct Answer:
Verified
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