Why Can a Monopoly Make an Economic Profit in the Long

question 222

Multiple Choice

Why can a monopoly make an economic profit in the long run?

• A) because there are close substitutes for the firm's product
• B) because the firm is protected by barriers to entry
• C) because the firm produces where MR = MC
• D) All of the above are reasons why a monopoly can earn an economic profit in the long run.

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Definitions:

Short-Term Planning

The process of setting goals and outlining actions for the near future, typically ranging from a few months to a year.

Work Activities

Tasks or sets of tasks that are carried out as part of one's job role or occupation.

Planning Activities

The process of organizing tasks, setting goals, and determining the actions required to achieve those goals.

Clarifying

The process of making statements or concepts less confused and more comprehensible.