Monopolists can earn positive economic profits in the long run because they are more productively efficient than perfectly competitive firms.

Question

Quizplus · Accepted Answer

Monopolists can earn positive economic profits in the long run not because they are more productively efficient than perfectly competitive firms, but because they have the ability to control prices and limit competition. This can lead to higher prices and profits for the monopolist.

Monopolists Can Earn Positive Economic Profits in the Long Run