In the Long Run, the Main Reason That a Monopolist

question 33

Multiple Choice

In the long run, the main reason that a monopolist can earn positive economic profits while a perfectly competitive firm cannot is:

• A)monopolists enjoy greater economies of scale.
• B)there are no barriers to entry in a perfectly competitive market.
• C)the monopolist faces an inelastic demand for its product.
• D)perfectly competitive firms face greater opportunity costs.

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Definitions:

Economic Order Quantity

A formula used in inventory management to determine the optimal order size that minimizes the total costs of holding and ordering stock.

Customer Relationship Management

A strategy for managing an organization's interactions with current and future customers, using data analysis about customers' history to improve business relationships.

Process Value Analysis

An analytical technique used to identify and eliminate unnecessary steps in a process or system, aiming to improve efficiency and reduce costs.

Value Chain Analysis

A method for analyzing a company's activities to improve its competitive position by identifying and optimizing the value-generating elements.