Exhibit 10-4
-For a monopoly, price can remain greater than average total cost in the long run.

Name: Exhibit 10-4 -For a monopoly, price can remain greater than average total cost in the long run.
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Question

Exhibit 10-4 
-For a monopoly, price can remain greater than average total cost in the long run.

Quizplus · Accepted Answer

A monopoly has the ability to charge a price above its average total cost in the long run, as it does not face competition that would drive down its price to marginal cost. As a result, it can continue earning economic profits in the long run.

Exhibit 10-4 -For a Monopoly, Price Can Remain Greater Than Average Total