A Monopoly Is Able to Continue to Generate Economic Profits

question 46

Multiple Choice

A monopoly is able to continue to generate economic profits in the long run because

• A) it can control both price and output in the market.
• B) potential competitors sometimes don't notice the profits.
• C) the monopolist is financially powerful.
• D) competition laws eliminate competitors for a specified number of years.
• E) there is some barrier to entry to that market.

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Definitions:

Complete Performance

refers to the fulfillment of all terms and conditions as outlined in a contract or agreement, without deviation or shortfall.

Substantial Performance

A legal principle where a party has completed enough of their contractual obligations to warrant payment, despite minor deviations from the specified performance.

Absolute Promise

A commitment or guarantee that is unconditional and without any limitations or qualifications.

Breach

A violation or infringement of a law, obligation, tie, or standard.