A monopoly is able to continue to generate economic profits in the long run because

Question

Quizplus · Accepted Answer

A monopoly is able to continue to generate economic profits in the long run because there is some barrier to entry to that market. This barrier to entry could be anything from high startup costs to government regulations to patents. Without a barrier to entry, competitors would enter the market and drive down prices and profits, ultimately eliminating the monopoly.

A Monopoly Is Able to Continue to Generate Economic Profits