The monopolist's outcome in the long run differs from that of the perfectly competitive firm in that the monopolist:
A)earns zero profits.
B)charges a price that is higher than average total costs.
C)charges a price where marginal cost equals average revenue.
D)charges a price equal to marginal cost.

Question

Quizplus · Accepted Answer

Monopolists can set prices above average total costs due to lack of competition, allowing them to earn positive profits in the long run, unlike perfectly competitive firms which earn zero economic profits in the long run.

The Monopolist's Outcome in the Long Run Differs from That