« previous next »

Author Question: Can an unregulated monopoly make an economic profit in the long run? Explain your answer. What ... (Read 29 times)

panfilo

  • Hero Member
  • *****
  • Posts: 572
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
« previous next »
 

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Three Sushi Does Not Make an EggRoll Three Sushi Does Not Make an EggRoll
A cutaway of a typical water pump showing the long bearing assembly and the seal. The weep hole is ... A cutaway of a typical water pump showing the long bearing assembly and the seal. The weep hole is ...
economic question economic question
economic question economic question
economic question economic question
economic question economic question
Video: Digestive System Animation

For a complete list of videos, visit our video library