A monopolist:
A)earns a profit only in the long run.
B)must set price equal to average cost and earns zero profit.
C)always earns a profit.
D)earns above the competitive rate of return in the long run.

Question

Quizplus · Accepted Answer

A monopolist can earn above the competitive rate of return in the long run due to their ability to charge a higher price than the competitive market price. This allows them to earn supernormal profits in the long run.

A Monopolist