Which of the Following Would Earn a Monopoly Profit Due

question 112

Multiple Choice

Which of the following would earn a monopoly profit due to a "natural scarcity" rather than a "contrived scarcity"?

• A)Major League Baseball
• B)A firm that develops an anti-gravity machine
• C)A "fountain of youth" tonic that comes exclusively from the water of a spring in Florida
• D)A camera company obtains a patent that it is able to maintain for over 40 years

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Definitions:

Short Run

A period in economic analysis during which some factors of production or inputs are fixed, limiting the ability of the economy or firm to adjust.

Long Run

A timeframe in economic analysis where all inputs can be adjusted, allowing for the analysis of long-term strategic planning.

This Firm

A term often used in economic models or discussions to represent a generic company or business under analysis.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.