If a Monopoly Firm Suddenly Lost Its Barriers to Entry

question 82

Multiple Choice

If a monopoly firm suddenly lost its barriers to entry and faced new competition,yet consumers thought that the former monopoly's products were somewhat different than its new competitors,then

• A) the industry has probably become perfectly competitive.
• B) long-run profit for this firm will likely exist.
• C) the industry has probably become a monopolistically competitive industry.
• D) the industry is probably cooperating to maximize joint profits.
• E) the industry has probably become a monopoly.

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Definitions:

Distribution

In statistics, the way in which data points are spread or distributed across a range of values.

Inventory Manager

A professional responsible for overseeing and managing a company's inventory, including ordering, storing, and distributing products.

Stock Boys

Individuals typically employed in retail establishments to stock merchandise and organize inventory.

Monthly Payroll

The total amount of wages paid by a business to its employees in one month.