Barriers to entry enable many monopolists to
A) charge as high a price as they want.
B) make people buy more of a good than they really want.
C) earn economic profits in the long run.
D) manipulate the government into providing special favors for themselves.

Question

Quizplus · Accepted Answer

Barriers to entry prevent or discourage potential competitors from entering a market, allowing monopolists to maintain their market power and earn economic profits in the long run. This is because with limited competition, monopolists can set prices above marginal cost without losing market share, enabling them to sustain higher profits over time.

Barriers to Entry Enable Many Monopolists to