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- Monopolyeconomics-mcqs › monopoly
- Published
- 30 May 2019
- Last updated
- 28 May 2026
Why can a monopoly sustain economic profits over an extended period?
Multiple choice question for Monopoly. Select an option, then review the explanation below.
Explanation
A monopoly can maintain long-term economic profits primarily because barriers to entry prevent other firms from entering the market. Other factors, such as rivals overlooking profits, the monopolist's financial strength, or antitrust laws, do not guarantee sustained profits on their own.
More Monopoly MCQs
Practice related questions from the same subject.
- 1.Which option best describes the concept of price discrimination?
- 2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
- 3.In a pure monopoly market, how does the price compare to the marginal revenue?
- 4.What action should a monopolist take when marginal revenue is greater than marginal cost?
- 5.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?