Which statement about the differences between monopoly and perfect competition is INCORRECT?
A)A monopolist has market power,while a perfect competitor does not.
B)Unlike a perfectly competitive firm,a monopoly can make positive economic profits in the long run.
C)A monopoly will charge a higher price and produce a smaller quantity than will a competitive market with the same demand and cost structure.
D)Monopoly profits can continue in the long run because the monopoly produces more and charges a higher price than does a comparable perfectly competitive industry.

Question

Quizplus · Accepted Answer

Monopoly profits cannot continue in the long run because in the absence of entry barriers, other firms will enter the market to capture some of the profits.

Which Statement About the Differences Between Monopoly and Perfect Competition