In contrast to a perfectly competitive firm, a monopolist earns:
A) negative economic profit in the long run.
B) zero economic profit in the long run.
C) positive economic profit in the long run.
D) earns positive economic profit in the short run.

Question

Quizplus · Accepted Answer

A monopolist can earn positive economic profit in the long run due to barriers to entry that prevent other firms from entering the market and eroding profits.

In Contrast to a Perfectly Competitive Firm, a Monopolist Earns