A monopoly is able to continue to generate economic profits in the long run because ?
Correct answer: A. there is some barrier to entry to that market
- A. there is some barrier to entry to that market
- B. Potential competitors sometimes don't notice the the profits.
- C. the monopolist is financially powerful.
- D. antitrust laws eliminate competitors for a specified number of years.
- E. of all of the things described in these answers
Explanation
Long-run economic profits can persist only when entry is blocked by barriers such as patents, legal restrictions, control of key resources, or economies of scale. Potential competitors not noticing profits and financial strength alone do not prevent entry.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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