Monopolists May in the Long Run

question 194

Multiple Choice

Monopolists may in the long run

• A)earn positive economic profit.
• B)be protected by barriers to entry.
• C)grow wealthy at the expense of their consumers.
• D)All of the above are correct.

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Definitions:

U-shaped Curve

A graphical representation showing a relationship where initial decreases are followed by increases, resulting in a curve shaped like the letter "U."

Long-run

A period in which all factors of production and costs are variable, allowing firms to adjust all input levels and technology to find the most efficient scale of operations.

Excise Tax

A specific tax levied on the sale of particular goods or services, such as alcohol and tobacco, usually aimed at discouraging consumption or raising revenue.