Monopoly as a market structure leads to
A)prices equal to average cost.
B)quick response to economic change.
C)prices that equal minimum long-run average cost.
D)persistent economic profits.

Question

Quizplus · Accepted Answer

Monopoly as a market structure leads to persistent economic profits because there are no close substitutes for the product being sold, allowing the monopolist to control prices and earn a higher profit margin compared to other market structures. Prices are not determined by competitive forces and may not be equal to either average cost or minimum long-run average cost. Response to economic change may not be quick as the monopolist has little incentive to invest in innovation or respond to changes in consumer preferences.

Monopoly as a Market Structure Leads to