Because it does not face competition from other firms,a monopolist is guaranteed to make excess profits over time.

Question

Quizplus · Accepted Answer

While a monopolist may have the potential to earn excess profits due to lack of competition, this is not guaranteed over time. Market demand, regulatory interventions, cost structures, and potential for new entrants can affect a monopolist's ability to sustain excess profits.

Because It Does Not Face Competition from Other Firms,a Monopolist