A Monopoly Earns Positive Economic Profits in the Long Run

question 26

Multiple Choice

A monopoly earns positive economic profits in the long run because:

• A) there are barriers to entry in the market.
• B) demand in a monopoly market is perfectly inelastic.
• C) it faces a kinked demand curve.
• D) it operates with constant returns to scale.
• E) it operates with an optimal plant size.

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Definitions:

Theory of Punishment

An aspect of criminal justice that explores the rationale behind imposing penalties on individuals who violate laws.

Restorative Justice

A criminal justice system that emphasizes on rehabilitating offenders by facilitating reconciliation with victims and the broader community.

Main Criticism

The primary or most significant objection raised against a particular idea, policy, or argument.

Restorative Justice

A system of criminal justice which focuses on the rehabilitation of offenders through reconciliation with victims and the community at large.