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The Main Reason a Monopolist Can Earn Long-Run Economic Profit

Question 31

Multiple Choice

The main reason a monopolist can earn long-run economic profit, whereas a perfectly competitive firm cannot, is that


A) monopolists operate under economies of scale
B) perfectly competitive firms have opportunity costs
C) demand for the monopolist's output is inelastic
D) demand for the monopolist's output is elastic
E) there are no barriers to entry in perfect competition

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