If monopolists are able to produce fewer goods and sell them at a higher price than they could under perfect competition, the result will be
A) elimination of barriers to entry
B) irregularly high unsustainable profits.
C) government deregulation.
D) abnormally high sustained profits.

Question

Quizplus · Accepted Answer

Monopolists can maintain abnormally high sustained profits because they control the market supply of a good or service, allowing them to set higher prices than in a competitive market. This control over the market often results from barriers to entry that prevent new competitors from entering the market and driving prices down through competition.

If Monopolists Are Able to Produce Fewer Goods and Sell