Consider Monopoly, Monopolistic Competition, and Perfect Competition

question 141

Multiple Choice

Consider monopoly, monopolistic competition, and perfect competition. In which of these three market structures does a profit-maximizing firm experience zero economic profit?

• A)perfect competition only
• B)perfect competition and monopolistic competition only
• C)perfect competition, monopolistic competition, and monopoly
• D)The answer cannot be determined without knowing whether the market is in the long run or short run.

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Definitions:

Legal Contracts

Binding agreements between two or more parties that are enforceable by law.

Record Date

The specific date set by a company to determine the shareholders eligible to receive dividends or other distributions.