In the long run, which of the following is not a problem for a monopolist earning economic profit?
a. other firms have an incentive to create substitutes for the monopolist's product
b. technological change tends to break down barriers to entry
c. patents expire, licenses must be renewed, and new sources of essential resources may be discovered
d. government often decides to regulate monopolies
e. all profit will gradually be converted to consumer surplus
E
You might also like to view...
In 1991 the unemployment rate in the United States rose to 7.1 percent. This is ________ the unemployment rate reached in the depths of the Great Depression
A) about two percentage points more than B) roughly equal to C) about three percentage points less than D) about half of E) less than one-third of
Economists consider which of the following costs to be irrelevant to a short-run business decision?
A) opportunity cost B) out-of-pocket cost C) historical cost D) replacement cost