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Why Can a Monopoly Make an Economic Profit in the Long

Question 208

Multiple Choice

Why can a monopoly make an economic profit in the long run?


A) because there are close substitutes for the firm's product
B) because the firm is protected by barriers to entry
C) because the firm produces where MR=MC
D) because P > MR
E) All of the above are reasons why a monopoly can make an economic profit in the long run.

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