Why can a monopoly earn economic profits in the long ...

[armygirl]

Why can a monopoly earn economic profits in the long run?

Question 2

Which of the following is a characteristic of an indifference curve?
 a. Positive slope.
  b. Concave shape.
  c. Negative slope.
  d. Zero slope.

[skipfourms123]

Answer to Question 1

Because a monopoly experiences very strong barriers to entry, keeping potential competitors out of its market, it can earn economic profits in the long run. Barriers to entry may include economies of scale, financial and technological barriers to entry, sole ownership over a strategic resource, and even government laws and regulation.

Answer to Question 2

c