Suppose firm X is a monopolist and is receiving positive economic profits. What prevents other firms from directly competing away the profits?
A)high barriers to entry
B)antitrust laws
C)low barriers to entry
D)diseconomies of scale
E)none of the above

Question

Quizplus · Accepted Answer

High barriers to entry prevent other firms from directly competing with a monopolist, preserving the monopolist's positive economic profits.

Suppose Firm X Is a Monopolist and Is Receiving Positive