Which of the following is true of monopoly markets?
A.
Deadweight loss exists in the short run, but not in the long run.
B.
A homogenous product allows for long-run entry of competing firms.
C.
Collusion between close rivals creates pricing above marginal cost.
D.
Barriers to entry allow for the power to set prices above marginal cost.
E.
Allocative efficiency is guaranteed because marginal revenue equals marginal cost.
Exam No： AP Micro Practice Test 4 Year：2024 Question No：34
Answer:
D
Knowledge points:
4.1 Introduction to Imperfectly Competitive Markets
4.2 Monopoly
6.1 Socially Efficient and Inefficient Market Outcomes
Solution:
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