Which of the following is true?
A)Monopolists never lose money in the short-run or long-run.
B)Monopolies can only be overcome by government action.
C)Having a recognizable brand name is a barrier to entry that can preserve monopoly power.
D)Patents are granted to investors who have control over an essential resource.

Question

Quizplus · Accepted Answer

Having a recognizable brand name can create brand recognition and loyalty among consumers, making it difficult for new firms to enter the market and compete. This can act as a barrier to entry and preserve the monopoly power of established firms. However, choices A, B, and D are not true as monopolists can lose money, monopolies can be overcome by other factors besides government action, and patents are granted for inventions, not for control over resources.

Which of the Following Is True