Which of the following have been suggested as sources of economic profit?
A)exercise of monopoly power by firms
B)accepting a large degree of risk
C)successful innovation
D)All of the above are correct.

Question

Which of the following have been suggested as sources of economic profit?
A)exercise of monopoly power by firms 
B)accepting a large degree of risk 
C)successful innovation 
D)All of the above are correct.

Quizplus · Accepted Answer

Exercise of monopoly power, accepting a large degree of risk, and successful innovation are all potential sources of economic profit. Firms that have significant market power can charge higher prices and earn higher profits, while those that take on greater risk by investing in new ventures or expanding operations in unpredictable markets may also see larger rewards. Finally, firms that successfully innovate and introduce new products, services, or production methods can gain an edge in the market and earn above-normal profits.

Which of the Following Have Been Suggested as Sources of Economic