Sizable Economic Profits Can Persist Over Time Under Monopoly If

question 283

Multiple Choice

Sizable economic profits can persist over time under monopoly if the monopolist

• A)produces that output where average total cost is at a maximum.
• B)is protected by barriers to entry.
• C)operates as a price taker rather than a price maker.
• D)earns revenues that exceed variable costs.

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Definitions:

Drive Theory

A psychological theory suggesting that behavior is motivated by the desire to fulfill basic biological needs.

Incentive

A motivation or reason for doing something, often a reward or benefit that encourages specific behavior.

Delay Of Gratification

The ability to resist the temptation for an immediate reward and wait for a later reward, often associated with better psychological outcomes.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, depicting a five-tier model of human needs, arranged in a hierarchy, stating that as basic needs are fulfilled people become motivated to achieve higher level needs.