Which of the following is most likely to be true of a monopoly in long-run equilibrium if it enjoys a patent and earns economic profit in the short run?
A)It will earn only a normal profit in the long run.
B)It will suffer an economic loss and stop producing in the long run.
C)It will earn a positive economic profit in the long run.
D)It will achieve productive efficiency in the long run.
E)It will achieve allocative efficiency in the long run.

Question

Quizplus · Accepted Answer

A monopoly with a patent can maintain its exclusive right to produce the patented product, allowing it to earn positive economic profits in the long run by preventing entry from competitors.

Which of the Following Is Most Likely to Be True