In the Long Run, a Single-Price Monopolist Will

question 386

Multiple Choice

In the long run, a single-price monopolist will

• A) make zero economic profit.
• B) be able to continue to make an economic profit as long as there is a barrier to entry.
• C) end up being regulated by the government because it is making short-run economic profits.
• D) Both answers A and C are correct.

---

Definitions:

Margin Of Safety

The difference between actual sales and sales at the break-even point. It measures the extent to which sales can decline before a business incurs a loss.

Variable Costs

Expenditures that adjust in relation to the business's output or operational intensity.

Fixed Expenses

Costs that do not fluctuate with the volume of sales or production levels, remaining constant even as business activities change.

Unit Selling Price

The price for which a single unit of a product is sold, excluding any discounts or allowances.