Homework Help is Here – Start Your Trial Now!
Business
Economics
In long run equilibrium, the pure monopolist can make pure profits because of A. Blocked entry В. The high price he charges C. The low LAC costs D. Advertising

In long run equilibrium, the pure monopolist can make pure profits because of A. Blocked entry В. The high price he charges C. The low LAC costs D. Advertising

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
**Question:** In long run equilibrium, the pure monopolist can make pure profits because of **Options:** A. Blocked entry B. The high price he charges C. The low LAC costs D. Advertising **Explanation:** This question addresses the concept of monopoly power in economics and why a monopolist can sustain profits in the long run. It provides four options, each explaining a possible reason for the ability of a monopolist to maintain pure profits. - **Blocked Entry:** Suggests that barriers to entry prevent other firms from entering the market, allowing the monopolist to maintain control over prices and profits. - **The High Price He Charges:** Implies that the monopolist can set high prices, contributing to profit retention. - **The Low LAC Costs:** Refers to low long-run average costs, which could enhance profitability through efficiency. - **Advertising:** Considers the role of marketing in maintaining demand and profits. Understanding these concepts can help in analyzing and predicting the behavior of monopolistic markets.
Transcribed Image Text:**Question:** In long run equilibrium, the pure monopolist can make pure profits because of **Options:** A. Blocked entry B. The high price he charges C. The low LAC costs D. Advertising **Explanation:** This question addresses the concept of monopoly power in economics and why a monopolist can sustain profits in the long run. It provides four options, each explaining a possible reason for the ability of a monopolist to maintain pure profits. - **Blocked Entry:** Suggests that barriers to entry prevent other firms from entering the market, allowing the monopolist to maintain control over prices and profits. - **The High Price He Charges:** Implies that the monopolist can set high prices, contributing to profit retention. - **The Low LAC Costs:** Refers to low long-run average costs, which could enhance profitability through efficiency. - **Advertising:** Considers the role of marketing in maintaining demand and profits. Understanding these concepts can help in analyzing and predicting the behavior of monopolistic markets.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS