The Large Barriers to Entry Are a Reason a Monopoly

question 205

Multiple Choice

The large barriers to entry are a reason a monopoly:

• A) earns an economic profit in the long run.
• B) produces at the minimum average total cost in the long run.
• C) produces with no fixed costs in the long run.
• D) maximizes its profits by producing where P = MC.

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Definitions:

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