Society would be better off with more products that create beneficial externalities

One firm previously operated as a monopoly. Now, one potential entrant exists. Consumers would prefer

A) entry, and the firms to split the output equally. B) no entry, and for the incumbent to produce the Stackelberg leader level of output. C) entry, and for the incumbent to produce the Stackelberg leader level of output. D) no entry, and the monopoly to continue.

Which of the following is not true of a perfectly competitive market?

a. Firms experience constant returns to scale. b. Firms face significant barriers to entry. c. Economic profit is zero. d. Each firm chooses the quantity it wants to sell. e. Each firm knows the prices of outputs and inputs.