Assume That Lorex Is the Only Pharmaceutical Company That Has

Multiple Choice

Assume that Lorex is the only pharmaceutical company that has a patent in producing the cholesterol drug Lipitor.Lorex can make a profit by selling Lipitor

A) in the short run but not in the long run because new firms will enter the industry in the long run.
B) only in the long run because government regulations prevent monopolists from earning profits in the short run.
C) in the long run but not the short run because the monopolist will face competition in the short run.
D) in the long run because entry into the industry by new firms is blocked until the patent expires.