Consider a monopoly who posts an economic profit of $10,000,000.All else equal,this monopolist should expect
A) entry into its market, prices to fall, profits to fall.
B) no entry into its market, prices to remain the same, profits to remain the same.
C) exit from its market, prices to rise, profits to rise.
D) entry into its market, the need to increase price, profits to remain the same.

Question

Quizplus · Accepted Answer

Monopolies have barriers to entry that prevent other firms from entering the market, so they can maintain their prices and profits without the threat of new competition.

Consider a Monopoly Who Posts an Economic Profit of $10,000,000