Which of the following is likely in a monopolized market?
A)a price that exceeds marginal cost
B)a price that exceeds marginal revenue
C)a welfare loss due to the restriction of output
D)the potential for continued profitability in the long run
E)all of the above

Question

Quizplus · Accepted Answer

In a monopolized market, the firm has market power and can influence the price, leading to a price that exceeds both marginal cost and marginal revenue. This results in a welfare loss due to the restriction of output. However, the firm may still be able to make profits in the long run as they have no competition to reduce their market share. Therefore, all of the above options are likely in a monopolized market.

Which of the Following Is Likely in a Monopolized Market