Other things remaining the same, a monopoly's supernormal proﬁts will be competed away in the long run.

Name: Other things remaining the same, a monopoly's supernormal proﬁts will be competed away in the long run.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a monopoly, the single firm has significant control over the market and barriers to entry prevent new competitors from entering the market, allowing the monopoly to maintain supernormal profits in the long run.

Other Things Remaining the Same, a Monopoly's Supernormal Proﬁts Will