The monopolist is able to enjoy profits in the long run because:
A)its price is set above its marginal costs.
B)there is no threat of competition.
C)it can charge a price that is higher than its average total costs.
D)All of these are true.

Question

Quizplus · Accepted Answer

All of the statements are true reasons why a monopolist can enjoy profits in the long run. They can set prices above marginal costs, face no competition, and charge prices higher than their average total costs.

The Monopolist Is Able to Enjoy Profits in the Long