In the short run,a monopoly may
A)only earn positive economic profits.
B)only earn zero economic profit,
C)earn positive economic profits or economic losses.
D)only earn economic losses.

Question

Quizplus · Accepted Answer

In the short run, a monopoly can earn either positive economic profits or economic losses. This is because a monopoly has the power to set prices above marginal cost, which allows them to earn profits. However, if the monopoly faces high costs or low demand, they may not be able to cover their costs and will earn losses. Therefore, a monopoly does not have to earn zero economic profits, nor will it necessarily always earn positive or negative profits.

In the Short Run,a Monopoly May