Large Barriers to Entry Are One Reason That a Monopoly

question 51

Multiple Choice

Large barriers to entry are one reason that a monopoly:

• A)earns an economic profit in the long run.
• B)produces at the minimum average total cost in the long run.
• C)produces with no fixed costs in the long run.
• D)maximizes its profits by producing where P = MC.

---

Definitions:

Taboos

Social or cultural prohibitions or restrictions that dictate certain behaviors, practices, or discussions are unacceptable or forbidden within a community or society.

Mores

Socially accepted standards and customs that are considered essential to the well-being and functioning of a culture or society.

Folkways

Norms for routine or casual interaction; these are the everyday practices and customs that guide social behavior in a society.

Laws

Established rules of conduct enforced by governmental authority to maintain order and protect rights and properties.