Which of the following is most necessary for a monopolist to survive in the long run?
A) a legal protection from entry
B) a perfect product
C) a brilliant Chief Operating Officer
D) an excellent marketing campaign
Question 2
A special license is required to operate a taxi in many cities. The number of licenses is restricted. More drivers want licenses than are issued. This describes a non-perfectly competitive market because
A) taxi services are very different.
B) firms cannot freely enter and exit the market.
C) transaction costs are high.
D) the government generates revenue from the licenses.
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