Answer to Question #192164 in Economics for Amirun

Question

1.Why is a monopoly good? The producer

A.has the fund to develop the product.

B.Is able to change high price.

C.is able to block other producers from competing with it.

D.enjoys huge profit

2.Why is a monopoly bad? The producer

A.limits the output available

B.Produces the only product available in the market.

C.enjoys abnormal profit in the short run.

D.is protected by barriers to entry.

3.The key feature of a monopolistic competitive industry is?

A.Product differentiation.

B.Zero profit in the LR.

C.Price-setter.

D.Freedom of entry and exit.

Answer 1

1) The correct answer is A) has the fund to develop the product.

2) The correct answer is D) is protected by barriers to entry.

3) The correct answer is D) Freedom of entry and exit.