Question

1.A monopoly exist because of?

A.A freedom of entry and exit.

B.Barriers to entry.

C.Product differentiation.

D.Homogenous product.

2.A normal profit is a profit level that?

A.Allows the firm to survive in the industry in the long run.

B.Covers the total cost.

C.Is faced by all firms in the short run.

D.Is faced by all firms in the long run.

Answer 1

1.A monopoly exist because of barriers to entry.

So, the correct answer is B.

2.A normal profit is a profit level that is faced by all firms in the long run.

So, the correct answer is D.