Because monopolists are protected by high barriers to entry, they:
A) may be able to earn long-run economic profits.
B) will not minimize the per-unit cost of producing their output.
C) will price their product at the highest possible price.
D) seek economic profit; however, they are not able to earn it in the long run.

Question

Quizplus · Accepted Answer

Monopolists are able to earn long-run economic profits because of the high barriers to entry that prevent other firms from entering the market and competing away those profits. This is one of the key characteristics of monopolies.

Because Monopolists Are Protected by High Barriers to Entry, They