Unlike a firm in pure competition, a monopolist may be able to
a. block the entry of new firms into the industry.
b. continue to earn economic profits in the long run.
c. earn economic profits in the short run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
d. both block the entry of new firms into the industry and continue to earn economic profits in the long run.
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A shortage occurs when the market price is lower than the equilibrium price
Indicate whether the statement is true or false
If a firm hires a resource in a perfectly competitive resource market,
a. it must also be a price taker in the product market b. it must also be a monopolist in the product market c. it faces a horizontal marginal resource cost curve d. it faces an upward-sloping marginal resource cost curve e. it faces a downward-sloping marginal resource cost curve