8. A monopolist: (Points : 5) earns a profit in the short run and the long run.
ID: 1230728 • Letter: 8
Question
8. A monopolist: (Points : 5)earns a profit in the short run and the long run.
earns a profit in the short run but not the long run.
can earn profits or incur losses in the short run.
can never incur losses.
9. Why are patents important to those who hold them? (Points : 5)
Without patents, there will no longer be economies of scale in production.
Patents act as a barrier to entry, allowing monopoly profits.
Without patents, there would be considerably more price discrimination in the market.
Patents actually do not matter because they do not guarantee that a firm will make a profit.
Explanation / Answer
earns a profit in the short run and the long run.
Patents act as a barrier to entry, allowing monopoly profits.