The monopoly firm may earn positive economic profits in the long run because

Question

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A monopoly firm may earn positive economic profits in the long run because of high barriers to entry. This means that it is difficult for new firms to enter the market and compete with the monopoly, allowing the monopoly to maintain its market power and charge higher prices. This results in higher profits for the firm. However, the other options presented (producing a homogeneous product, being resource allocative efficient, and being productive efficient) do not necessarily lead to economic profits in the long run.

The Monopoly Firm May Earn Positive Economic Profits in the Long