Which of the Following Factors Explains the Difference in Long-Run

question 110

Multiple Choice

Which of the following factors explains the difference in long-run profits earned by a monopolist and a perfectly competitive firm?

• A)Monopolists experience economies of scale.
• B)Perfectly competitive firms have high opportunity costs.
• C)The demand for the monopolist's output is perfectly inelastic.
• D)The demand for the monopolist's output is perfectly elastic.
• E)There are no barriers to entry in perfect competition.

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Definitions:

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A school of thought in jurisprudence that holds the belief that the validity of a law is not related to its morality but is contingent upon its sources and recognition by the state.

Validly Enacted Laws

Laws that have been properly passed and approved by the legislative process, and are therefore legally binding.

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A legal principle or legislation that is regarded as fair, morally right, and in accordance with ethical standards.

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A corrective action ordered by a court that involves doing or refraining from doing something, as opposed to paying damages, to address a legal wrong or a breach of contract.