A monopoly firm enjoys a _______ because it is protected by _______ from _______ .
A) weak position; barriers to entry; competition
B) privileged position; barriers to entry; competition
C) position that always achieves economic profit; competition; new entrants into the industry.
D) All of the above are true.

Question

Quizplus · Accepted Answer

A monopoly firm enjoys a privileged position because it is protected by barriers to entry from potential competitors. This allows the firm to control the market and charge higher prices without fear of competition driving prices down. Option A is incorrect because a monopoly firm enjoys a strong position due to the lack of competition, not a weak one. Option C is incorrect because a monopoly firm may not always achieve economic profit, and its protected position comes from barriers to entry, not competition. Option D is incorrect because only option B accurately describes the advantages a monopoly firm enjoys.

A Monopoly Firm Enjoys a _______ Because It Is Protected