Q352
In long run equilibrium, the pure monopolist can make pure profits because of
A.
Blocked entry
AnswerB.
The high price he charges
C.
The low LAC costs
D.
Advertising
Answer: Option A
Solution
Answer: Option A
Solution:
In long run equilibrium, the pure monopolist can make pure profits because of blocked entry. Barriers may block entry even if the firm or firms currently in the market are earning profits.