Asked by
Lance Peters
on Nov 05, 2024Verified
If a monopolist earns positive economic profits in the long run,
A) new firms will enter the market.
B) the monopolist expands production.
C) the industry supply curve shifts to the right.
D) the monopolist will not change its behavior.
Economic Profits
Profits exceeding the opportunity costs of all resources used in production, indicating the firm is earning more than the minimum required to stay in business.
Monopolist
A single seller in a market who has significant control over the supply and price of a particular product or service.
- Understand the role of barriers to entry in maintaining long-term monopoly profits.
Verified Answer
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Learning Objectives
- Understand the role of barriers to entry in maintaining long-term monopoly profits.