A monopolist will earn

Name: A monopolist will earn
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A monopolist can earn positive economic profit as long as entry is blocked because it has the ability to set its price above the competitive level, which results in a higher profit margin. However, if entry becomes available, competition will increase and the monopolist's profit will decrease. In the long run, a monopolist could potentially earn normal profit, but this would require perfect price discrimination, which is unlikely in most cases.

A Monopolist Will Earn