Which of These Is Likely to Be True of Perfect

Multiple Choice

Which of these is likely to be true of perfect competition but not of monopoly?

A) A firm can produce a good only if government licenses authorize it to produce the good.
B) A firm can sell a good in the market only if the government grants a patent to the firm.
C) A firm can earn economic profit in the long run.
D) A firm can shut down in the short run only if the price charged by it exceeds the average variable cost of production.
E) A firm can face competition from new entrants into the market in the long run.