"All monopolies operate with positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?
Disagree. Monopolies can receive negative economic profits and can go out of business. If there is no price that lies above average total costs, the firm will receive negative economic profits. In the short run, it will continue to operate as long as price is greater than average variable cost, but it will go out of business in the long run.
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The future of the U.S as leader of the economic world:
a. is likely to continue for generations to come b. will be sustained in the next generation, but not beyond c. requires U.S. action in several critical economic areas d. requires a return of manufacturing to the U.S.
One determinant of the long-run average unemployment rate is the
a. market power of unions, while the inflation rate depends primarily upon government spending. b. minimum wage, while the inflation rate depends primarily upon the money supply growth rate. c. rate of growth of the money supply, while the inflation rate depends primarily upon the market power of unions. d. existence of efficiency wages, while the inflation rate depends primarily upon the extent to which firms are competitive.