Monopoly firms manage to earn positive profits,even in the long run because

Question

​Monopoly firms manage to earn positive profits,even in the long run because

Quizplus · Accepted Answer

Monopoly firms earn positive profits in the long run because of all the factors mentioned: they have no close substitutes, there are high barriers of entry to the market, and they have a cost advantage that is difficult for competitors to duplicate. These factors allow the monopolist to maintain its market power and charge higher prices than would be possible in a competitive market.

​Monopoly Firms Manage to Earn Positive Profits,even in the Long

Monopoly Firms Manage to Earn Positive Profits,even in the Long