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:

Lee

Refers to a historical or notable figure, possibly Robert E. Lee, a Confederate general in the American Civil War, known for his leadership and military strategy.

Union General

A high-ranking officer in the Union army during the American Civil War.

Clear Defeat

A term used to describe a situation in which one party in a conflict is overwhelmingly beaten by the other, leaving no ambiguity about the outcome.

Confederacy

During the American Civil War, it refers to the southern states that seceded from the United States to form their own government in opposition to the Union.