In the absence of government regulation, a monopoly firm can indefinitely sustain greater than normal profits.

Name: In the absence of government regulation, a monopoly firm can indefinitely sustain greater than normal profits.
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Question

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A monopoly firm has significant market power, which enables it to charge higher prices and earn greater profits than a competitive firm. In the absence of government regulation or new market entrants, a monopoly can sustain these profits indefinitely.

In the Absence of Government Regulation, a Monopoly Firm Can