Which of the following best describes a monopolist in the long run?
A) It may make an economic loss, an economic profit, or zero economic profits.
B) It always earns an economic profit.
C) It always earns a normal rate of return.
D) It always suffers an economic loss.

Question

Quizplus · Accepted Answer

In the long run, a monopolist may experience economic profit, economic loss, or zero economic profits depending on changes in market demand, costs of production, and potential entry of competitors. This is because in the long run, the market can adjust to changes and competitors may enter or exit the market, affecting the monopolist's profitability. Therefore, option A is the best description of a monopolist in the long run.

Which of the Following Best Describes a Monopolist in the Long