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.

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Definitions:

Intensity

The degree of strength, force, or concentration applied to an activity, effort, or phenomenon.

Perceptual Setting

The context or environment that influences an individual’s perception or interpretation of information.

Physical

Relating to things perceived through the senses as opposed to the mind; tangible or concrete.

Social

Pertains to activities, processes, or phenomena that involve interactions between individuals or groups in a society.