Answer to Question #347719 in Microeconomics for vovo

Question

ich one of the following statements about a monopoly is true?

A.The monopolist has a flat demand curve because of high barriers to entry.

B.For a monopolistic firm, profit will be maximised where P = MR.

C.Price in the long run is not usually equal to minimum average total cost.

D.In the long run, a monopolist can earn only normal profits.

Answer 1

A. The monopolist has a flat demand curve because of high barriers to entry.