A monopolist can make an economic profit in the long run because of
A) the relatively elastic demand for its product.
B) the relatively inelastic demand for its product.
C) the firm's price setting behavior.
D) barriers to entry.

Question

Quizplus · Accepted Answer

Barriers to entry prevent other firms from entering the market, allowing the monopolist to maintain economic profits in the long run.

A Monopolist Can Make an Economic Profit in the Long