Because Monopolists Are Protected by High Barriers to Entry, They

question 58

Multiple Choice

Because monopolists are protected by high barriers to entry, they:

• A) may be able to earn long-run economic profits.
• B) will not minimize the per-unit cost of producing their output.
• C) will price their product at the highest possible price.
• D) seek economic profit; however, they are not able to earn it in the long run.

---

Definitions:

Müller-Lyer Illusion

A visual illusion where lines of the same length appear to be different lengths due to arrow-like tails.

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear different in length because of converging parallel lines in the background.

Necker Effect

An optical illusion related to the perception of a two-dimensional drawing of a cube, which can spontaneously appear to switch orientation.

McCullough Effect

A phenomenon where prolonged exposure to colored gratings causes the visual system to adapt and see complementary colors in grayscale patterns.