Both monopolists and monopolistic competitors:
A)make positive economic profits in the long run.
B)have high barriers to entry.
C)charge a price that is greater than the MC of production.
D)produce a unique product.

Question

Quizplus · Accepted Answer

Both monopolists and monopolistic competitors charge a price that is greater than the marginal cost of production. However, monopolies have higher barriers to entry and produce a unique product, while monopolistic competitors have lower barriers to entry and produce a differentiated product. Neither monopolies nor monopolistic competitors necessarily make positive economic profits in the long run, as their profits may be eroded by competition or regulation.

Both Monopolists and Monopolistic Competitors