In the long run,a monopolist ________.
A) will earn zero economic profits
B) always earns positive economic profits
C) may earn positive economic profits
D) will produce where Price = Marginal cost

Question

Quizplus · Accepted Answer

In the long run, a monopolist may earn positive economic profits because they have the ability to restrict output and charge a higher price than their marginal cost. However, it is not guaranteed that they will earn positive economic profits as market conditions may change and competition may arise. The monopolist will not produce where price equals marginal cost as they will always produce where marginal revenue equals marginal cost in order to maximize profits.

In the Long Run,a Monopolist ________