A. Which one of the following is true ? DeBeers is a good example of monopolisti

Question

A. Which one of the following is true?

DeBeers is a good example of monopolistic competition.

The corn industry is a good example of a monopoly.

Beer is a good example of perfect competition.

OPEC is a good example of an oligopoly.

B.Which firms typically have zero economic profits in the long run?

monopolist, perfectly competitive

perfectly competitive, monopolistically competitive

oligopolist, monopolistically competitive

perfectly competitive, oligopolist

DeBeers is a good example of monopolistic competition.

The corn industry is a good example of a monopoly.

Beer is a good example of perfect competition.

OPEC is a good example of an oligopoly.

B.Which firms typically have zero economic profits in the long run?

monopolist, perfectly competitive

perfectly competitive, monopolistically competitive

oligopolist, monopolistically competitive

perfectly competitive, oligopolist

Explanation / Answer

1- debeers is a good example of monopolistic competition because the beer produced is differentiatied, also there is free entry and exit in the beer industry,

so answer is A

2- in long run there is free entry and exit in monopolistic competition and perfect competition market thus the long run profits of these two market structures is zero,

so answer is B

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