Which of the following statements is not correct about monopoly?
A)A monopolist generally faces a downward sloping demand curve.
B)Monopolists always make positive profits in the long-run.
C)A monopoly may make negative profits in the short-run.
D)There is no close substitute for a monopoly's product.

Question

Quizplus · Accepted Answer

Monopolists may make negative profits in the short run due to various factors such as high fixed costs, low demand, or technological changes. In the long run, they may still make positive profits if barriers to entry exist and prevent new firms from entering the market. However, it is not always guaranteed that monopolists will make positive profits in the long run.

Which of the Following Statements Is Not Correct About Monopoly