A Monopolist Can Make an Economic Profit in the Long

question 133

Multiple Choice

A monopolist can make an economic profit in the long run because of

• A) the firm's price setting behaviour.
• B) the fact that the firm produces where MR = MC.
• C) the relatively inelastic demand for its product.
• D) the relatively elastic demand for its product.
• E) barriers to entry.

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Definitions:

Indian Act

A Canadian federal law enacted to regulate and administer the affairs and day-to-day lives of First Nations, including governance and land management.

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The capability of a contract or legal agreement to be legally compelled or upheld in a court of law.