Microeconomics

MCQ - 58-4068

Question:

Which of the following is true of monopoly markets?

Deadweight loss exists in the short run, but not in the long run.
A homogenous product allows for long-run entry of competing firms.
Collusion between close rivals creates pricing above marginal cost.
A homogenous product allows for long-run entry of competing firms.
Allocative efficiency is guaranteed because marginal revenue equals marginal cost.

Correct Answer: D

Explanation:

Barriers to entry are the key to monopoly pricing power.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Which of the following is true of monopoly markets? , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 58-4068.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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