Compared to a monopolistic competitor,a monopoly producer who was currently earning economic profits:
A) would face a more elastic demand curve.
B) would face a less elastic demand curve.
C) could continue to earn economic profits for a longer period of time.
D) would be characterized by both (b) and (c).

Question

Quizplus · Accepted Answer

A monopoly producer faces a less elastic demand curve and can continue to earn economic profits for a longer period due to barriers to entry.

Compared to a Monopolistic Competitor,a Monopoly Producer Who Was Currently