Because of a Patent, Alcoa Is the Only Manufacturer of Soda

question 80

Multiple Choice

Because of a patent, Alcoa is the only manufacturer of soda cans with a stay-put tab. Alcoa can earn a profit on the sale of soda cans with stay-put tabs

• A) in the short run but not in the long run because new firms will enter the industry in the long run.
• B) only in the long run because government regulations prevent monopolists from earning profits in the short run.
• C) in the long run but not the short run because the monopolist will face competition in the short run.
• D) in the long run because entry into the industry by new firms is blocked until the patent expires.

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