If a Single-Price Monopoly Is Making a Large Economic Profit,what

question 81

Multiple Choice

If a single-price monopoly is making a large economic profit,what keeps other firms from competing away the profit?

• A) There are barriers to entry.
• B) The monopoly must be keeping the amount earned secret.
• C) The market must be too small.
• D) The existing firm's ATC must be too large to allow competitors to enter and earn an economic profit.
• E) Nothing, other firms will enter and will compete away the profit.

---

Definitions:

Twisted Mainshaft

A mainshaft in a gearbox or transmission that has been deformed or bent, affecting its ability to rotate smoothly.

Gear Ratio

The ratio of the rotational speeds of the first and last gears in a transmission, reflecting the difference between the input and output gears.

Shock Load

A sudden and extreme force or load applied to a structural component or system, often exceeding the designed stress limits.

Mineral-Based

Refers to substances or products derived from minerals, often used in context with lubricants, coolants, or other industrial fluids.