Which of the Following Could Be True of Perfect Competition

question 245

Multiple Choice

Which of the following could be true of perfect competition but not of monopoly?

• A)The government licenses production of the good to a few firms.
• B)The government grants a patent for the good.
• C)A firm can earn economic profit in the long run.
• D)If price falls below average variable cost, it pays to shut down.
• E)There are no barriers to entry.

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Definitions:

Psychographics

Psychographics pertain to the study of consumer behavior based on psychological traits, lifestyle choices, and personal values to inform marketing strategies.

Market

A place where people can sell goods and services (the supply) to people who wish to buy those goods and services (the demand).

Customer Mapping Process

A strategic approach to understanding the journey of the customer with a business, from initial awareness to post-purchase interactions, aiming to improve customer experience.

Color-Blindness

The concept of ignoring racial differences and treating all individuals equally, without acknowledging existing racial disparities and inequalities.