In the short run, a monopoly
A) will usually earn zero economic profits.
B) may earn positive economic profits due to entry barriers.
C) will often suffer economic losses.
D) results in an efficient outcome.

Question

Quizplus · Accepted Answer

In the short run, a monopoly may earn positive economic profits because barriers to entry prevent new firms from entering the market and competing, which allows the monopolist to maintain higher prices and profits.

In the Short Run, a Monopoly