If entry and exit are not costless, a monopoly can still make supernormal profits in the long run.

Name: If entry and exit are not costless, a monopoly can still make supernormal profits in the long run.
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Question

Quizplus · Accepted Answer

Monopolies can maintain supernormal (or abnormal) profits in the long run because barriers to entry, such as high entry and exit costs, protect the monopoly from new competitors entering the market and driving profits down to normal levels.

If Entry and Exit Are Not Costless, a Monopoly Can