Monopolists may in the long run
A)earn positive economic profit.
B)be protected by barriers to entry.
C)grow wealthy at the expense of their consumers.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Monopolists may earn positive economic profit as there are no close substitutes available in the market, which means they can charge a higher price than the cost of production. Barriers to entry can protect monopolists, as new firms may not be able to enter the market due to high entry costs or legal restrictions. Monopolists can grow wealthy at the expense of their consumers by charging a higher price than the competitive market price, leading to higher consumer surplus.

Monopolists May in the Long Run