A monopoly earns positive economic profits in the long run because _____.
A) there are barriers to entry in the market
B) demand in a monopoly market is perfectly elastic
C) it faces a kinked demand curve
D) it operates with diseconomies of scale
E) it operates with an optimal plant size
Correct Answer:
Verified
Q4: A monopolist produces the equilibrium output of
Q5: Which of the following is true of
Q6: The following figure shows the demand curve
Q7: Compared to a perfectly competitive industry,a monopolist
Q10: The following figure shows the demand curve
Q11: The following figure shows the demand curve
Q12: Which of the following does not contribute
Q14: Which of the following is true of
Q15: If the regulator institutes average-cost pricing in
Q16: The basic objective of a cartel is
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