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.