Why can a monopolist continue to make positive profits even inthe long-run while a perfectly competitive firm can make only zeroeconomic profits in the long-run?
A.Because a monopoly only has one firm while perfect competitionhas many.
B.Because monopoly has barriers to entry and perfect competitionhas free entry.
C.Because perfect competition has barriers to entry and monopolyhas free entry.
D.Because in perfect competition everyone produces the same productand because in monopoly there are no close substitutes
2. Because of a patent, Alcoa is the only manufacturer of soda canswith a stay-put tab. Alcoa can earn a profit on the sale of sodacans with stay-put tabs
A. in the short run but not in the long run because new firms canenter the industry in the long run.
B. only in the long run because government regulations preventmonopolists from earning profits in the short run.
C. in the long run but not the short run because the monopolistwill face competition in the short run.
D. not only in the short run but also in the long run because entryinto the industry by new firms is blocked until the patentexpires.
Why can a monopolist continue to make positive profits even inthe long-run while a perfectly competitive firm can make only zeroeconomic profits in the long-run?
A.Because a monopoly only has one firm while perfect competitionhas many.
B.Because monopoly has barriers to entry and perfect competitionhas free entry.
C.Because perfect competition has barriers to entry and monopolyhas free entry.
D.Because in perfect competition everyone produces the same productand because in monopoly there are no close substitutes
2. Because of a patent, Alcoa is the only manufacturer of soda canswith a stay-put tab. Alcoa can earn a profit on the sale of sodacans with stay-put tabs
A. in the short run but not in the long run because new firms canenter the industry in the long run.
B. only in the long run because government regulations preventmonopolists from earning profits in the short run.
C. in the long run but not the short run because the monopolistwill face competition in the short run.
D. not only in the short run but also in the long run because entryinto the industry by new firms is blocked until the patentexpires.
