Multiple Choice
Which of the following factors explains the difference in long-run profits earned by a monopolist and a perfectly competitive firm?
A) Monopolists experience economies of scale.
B) Perfectly competitive firms have high opportunity costs.
C) The demand for the monopolist's output is perfectly inelastic.
D) The demand for the monopolist's output is perfectly elastic.
E) There are no barriers to entry in perfect competition.
Correct Answer:
Verified
Correct Answer:
Verified
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