Multiple Choice QuestionA(n) Blank______ is able to maintain an economic profit in the long run because there are no new entrants to increase supply, drive down price, and eliminate economic profit.Multiple choice question.oligopolistic firmmonopolistically competitive firmperfectly competitive firmmonopoly
Question
Multiple Choice QuestionA(n) Blank______ is able to maintain an economic profit in the long run because there are no new entrants to increase supply, drive down price, and eliminate economic profit.Multiple choice question.oligopolistic firmmonopolistically competitive firmperfectly competitive firmmonopoly
Solution
The correct answer is "monopoly". A monopoly is a type of market structure where there is only one producer/seller for a product. In other words, the single business is the industry. Entry into such a market is restricted due to high costs or other impediments, which may be economic, social, or political. For these reasons, monopolies can maintain an economic profit in the long run.
Similar Questions
Multiple Choice QuestionEntry to and exit from monopolistically competitive industries is Blank______.Multiple choice question.relatively easyrelatively difficultimpossibleundesirablecostless
Multiple Choice QuestionWhich of the following explains why a pure monopolist is able to maintain an economic profit in the long run?Multiple choice question.There are no new entrants to increase supply, drive up price, and eliminate profit.There are no new entrants to decrease supply, drive up price, and eliminate profit.There are no new entrants to increase supply, drive down price, and eliminate profit.There are no new entrants to decrease supply, drive down price, and eliminate profit.
Multiple Choice QuestionA monopolistically competitive firm may be able to continue earning greater than a normal profit in the long run Blank______.Multiple choice question.by decreasing varietyby not spending on advertisingthrough further product differentiationby standardizing its product
Multiple Choice QuestionIn long-run equilibrium, monopolistically competitive firms will show a(n) Blank______.Multiple choice question.above-normal profitnormal profitincreasing lossbelow-normal profit
Multiple Choice QuestionMonopolistically competitive firms to engage in Blank______ competition by means of product differentiation and advertising, which makes the market situation complex.Multiple choice question.unproductivepricenonpricepure
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