Ask Question
23 January, 04:26

Because monopolists are protected by high barriers to entry, they: a. will not minimize the per-unit cost of producing their output. b. may be able to earn long-run economic profits. c. seek economic profit; however, they are not able to earn it in the long run. d. will price their product at the highest possible price.

+2
Answers (1)
  1. 23 January, 04:55
    0
    Answer: Option (b) is correct.

    Explanation:

    In a monopoly market condition, there is a single firm operating in a market and it is a price setter. Monopolist have the capability to earn abnormal profits in the short run as well as in the long run.

    The price that is set by the monopolist can't be influence by the other firms because there is a high barriers to entry into the market. Hence, monopolist may earn profits in the short run and may also earn economic profits in the long run.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Because monopolists are protected by high barriers to entry, they: a. will not minimize the per-unit cost of producing their output. b. may ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers