Figure 11-7
-It is not true in the long run of monopolies that
A)other firms seeking positive economic profit enter the market.
B)they earn positive economic profit.
C)they sell their output at a price greater than marginal cost.
D)they benefit from barriers to entry.

Question

Figure 11-7 
-It is not true in the long run of monopolies that
A)other firms seeking positive economic profit enter the market. 
B)they earn positive economic profit. 
C)they sell their output at a price greater than marginal cost. 
D)they benefit from barriers to entry.

Quizplus · Accepted Answer

In the long run, other firms seeking positive economic profit are likely to enter the market and compete with the monopoly, eroding their economic profit.

Figure 11-7 -It Is Not True in the Long Run of Monopolies