Which of the following could be true of perfect competition but ...

[vinney12]

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.

Question 2

Which of the following is not characteristic of perfect competition?
 a. many buyers and sellers
  b. brand name advertising
  c. standardized products
  d. fully informed buyers and sellers
  e. free entry and exit of firms

[jlaineee]

Answer to Question 1

E

Answer to Question 2

B

[vinney12]

Thank you

[jlaineee]

Happy to help you