Large barriers to entry are one reason that a monopoly:
A)earns an economic profit in the long run.
B)produces at the minimum average total cost in the long run.
C)produces with no fixed costs in the long run.
D)maximizes its profits by producing where P = MC.

Question

Quizplus · Accepted Answer

Large barriers to entry prevent other firms from entering the market and competing with the monopoly. This allows the monopoly to continue earning an economic profit in the long run, as there are no other firms to drive down prices and lower its profits.

Large Barriers to Entry Are One Reason That a Monopoly