Author Question: Can an unregulated monopoly make an economic profit in the long run? Explain your answer. What ... (Read 65 times)

panfilo

  • Hero Member
  • *****
  • Posts: 572
Can an unregulated monopoly make an economic profit in the long run? Explain your answer.
 
  What will be an ideal response?

Question 2

What is the relationship between marginal cost and fixed cost?
 
  What will be an ideal response?



Edwyer

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

An unregulated monopoly can make an economic profit in the long run. The fact that the monopoly is protected by a barrier to entry allows the firm to make an economic profit in the long run. If the monopoly is making an economic profit, other competitors want to enter the market but the barrier to entry keeps them out.

Answer to Question 2

There is no relationship between marginal cost and fixed cost. Marginal cost examines the change in total costs from a change in output. Fixed costs remain the same even when output changes.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library