Monopolies Differ from Perfectly Competitive Firms in the Long Run

question 163

Multiple Choice

Monopolies differ from perfectly competitive firms in the long run because

• A)perfectly competitive firms can earn economic profit
• B)monopolies can earn economic profit
• C)monopolies produce a smaller share of the industry output
• D)patents and copyright laws protect monopolists for as long as they desire
• E)monopolists have long-run average cost curves

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Definitions:

Cent

The smallest denomination of currency in many countries, representing 1/100th of the basic unit of currency.

Significant Figures

The number of digits in a value that contribute to its accuracy, typically used in scientific measurements.

Percent

A ratio or fraction out of 100 representing a part of a whole.

Cent

A monetary unit that is equal to one hundredth of the base unit of currency in many countries, such as the dollar or euro.