The large barriers to entry are a reason a monopoly:
A) earns an economic profit in the long run.
B) produces at the minimum average total cost in the long run.
C) produces with no fixed costs in the long run.
D) maximizes its profits by producing where P = MC.

Question

Quizplus · Accepted Answer

Monopolies can earn economic profits in the long run due to high barriers to entry, which prevent other firms from entering the market and competing away profits.

The Large Barriers to Entry Are a Reason a Monopoly