If a Single-Price Monopoly Is Making a Large Economic Profit

Multiple Choice

If a single-price monopoly is making a large economic profit, what keeps other firms from competing away the profit?

A) The monopoly must be keeping the amount earned secret.
B) The existing firm's ATC must be too large to allow competitors to enter and earn an economic profit.
C) There are barriers to entry.
D) The market must be too small.
E) Nothing, other firms will enter and will compete away the profit.