Which of the following is a characteristic of monopoly in the long run?
A) The firm makes zero economic profit.
B) The firm can make an economic profit.
C) Price equals marginal cost.
D) Price equals marginal revenue.

Question

Quizplus · Accepted Answer

In the long run, a monopoly can make an economic profit because it has market power to set prices above marginal cost without competition driving the price down.

Which of the Following Is a Characteristic of Monopoly in the Long