A monopoly earns positive economic profits in the long run because:

Question

Quizplus · Accepted Answer

A monopoly earns positive economic profits in the long run because there are barriers to entry in the market. These barriers can include legal barriers, economies of scale, control over essential resources or technologies, and other factors that make it difficult for new firms to enter and compete in the market. As a result, the monopoly firm can continue to earn economic profits without facing competition from new entrants.

A Monopoly Earns Positive Economic Profits in the Long Run