Unlike perfectly competitive firms,monopolists _____
A)earn positive short-run economic profit even if price is less than average variable cost at all rates of output.
B)sell any quantity of output at any price they choose.
C)earn long-run economic profits.
D)reduce the sales of firms in other industries through advertising.
E)face a perfectly elastic demand curve.

Question

Quizplus · Accepted Answer

Monopolists can earn long-run economic profits due to barriers to entry that prevent other firms from entering the market and driving profits to zero, unlike in perfect competition where profits are driven to zero in the long run due to free entry and exit.

Unlike Perfectly Competitive Firms,monopolists _____