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
Q2: A monopolist is
A)one of a large number
Q3: U.S.patent laws establish property rights for inventors
Q4: Which of the following is true of
Q5: Patent laws
A)reduce incentive to innovate by restricting
Q6: Which of the following is not considered
Q7: Which of the following would probably not
Q8: Which of the following describes the market
Q9: Innovation is the process of turning an
Q10: Natural monopolies form when
A)small firms merge to
Q11: Which of the following prevents potential competitors
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