A Difference Between a Perfectly Competitive Industry and a Monopoly

question 350

Multiple Choice

A difference between a perfectly competitive industry and a monopoly is that

• A) in the long run, firms in a perfectly competitive industry make zero economic profit and a monopoly can make an economic profit.
• B) a firm in a perfectly competitive industry can perfectly price discriminate but a monopoly cannot.
• C) only monopolies have an incentive to maximize profit.
• D) perfectly competitive firms can have a public franchise.
• E) a barrier to entry protects perfectly competitive firms in the short run and protects a monopoly in the long run.

---

Definitions:

Generating and Storing Solar Energy

The process of converting sunlight into electricity and storing that energy for later use.

Mandatory Retirement

A policy or rule that requires employees to retire at a certain age regardless of their wish or capability to continue working.

Labor Force

The total number of people employed and unemployed, who are actively looking for work and capable of working.

Marginal Benefit Curve

A graphical representation showing how the benefit (utility or satisfaction) to a consumer changes as consumption of a good or service increases.