Barriers to entry enable many monopolists to
A) charge as high a price as they want.
B) make people buy more of a good than they really want.
C) earn economic profits in the long run.
D) manipulate the government into providing special favors for themselves.
Answer: C
You might also like to view...
When the term "price" is used in the law of demand, price refers to
A) the dollar price of the good. B) the price of the good relative to the price of another good. C) the absolute price of the good. D) the nominal price of the good relative to its nominal price in the previous year.
What would happen in an economy if total planned production exceeded total planned real expenditures?
A. Inventories would accumulate, and firms would tend to lower prices. B. Inventories would be depleted, and firms would tend to raise prices. C. Inventories would accumulate, and firms would tend to raise prices. D. Inventories would be depleted, and firms would tend to lower prices.