A Significant Difference Between Monopoly and Perfect Competition Is That

question 3

Multiple Choice

A significant difference between monopoly and perfect competition is that:

• A) free entry and exit is possible in a monopolized industry but impossible in a competitive industry.
• B) competitive firms control market supply, but monopolies do not.
• C) the monopolist's demand curve is the industry demand curve, whereas the competitive firm's demand curve is perfectly elastic.
• D) profits are driven to zero in a monopolized industry but may be positive in a competitive industry.

---

Definitions:

Initial Maturities

The onset period before a bond, note, or other financial instrument reaches its due date for payment.

T-Bills

Treasury Bills are short-term U.S. government debt obligations backed by the Treasury Department with a maturity of one year or less.

Marketable Money

Money or financial instruments that can be easily converted to cash without significant loss in value.

Market Security

A financial instrument such as stocks, bonds, or any tradable financial asset that is bought and sold in a financial market.