A monopoly is able to continue to generate economic profits in the long run because ?

Related Mcqs:

The purpose of antitrust (also known as competition) laws is to ?

A. Increase competition in an industry by preventing mergers and breaking up large firms. B. regulate the prices charged by a monopoly C. increase merger activity to help generate synergies that reduce costs and raise efficiency. D. create public ownership of natural monopolies E. all of these answers...

Which of the follow statements about price discrimination is not true ?

A. Perfect price discrimination generates a deadweight loss B. Price discrimination can raise economic welfare. C. price discrimination requires that seller be able to separate buyers according to their willingness to pay. D. Price discrimination increases a monopolist’s profits. E. For a monopolist to engage in price discrimination buyers must be unable to engage in … Which of the follow statements about price discrimination is not true ?Read More...

Which of the following is a characteristic of pure monopoly ?

A. One seller of the product B. low barriers to entry C. close substitute products D. perfect information...

In pure monopoly, what is the relation between the price and the marginal revenue ?

A. the price is greater than the marginal revenue B. the price is less than the marginal revenue C. there is no relation D. they are equal...

Compared to the case of perfect competition, a monopolist is more likely to ?

A. charge a higher price B. produce a lower quantity of the product C. make a greater amount of economic profit D. all of the above...