Asked by Dontae Perkins on Jun 24, 2024
Verified
A monopolist, being the sole seller in a market, is assured of positive economic profits.
Economic Profits
Profits exceeding the opportunity costs of all resources utilized by a firm, representing superior returns over the next best alternative.
Sole Seller
A market condition where only one supplier provides a particular good or service, also known as a monopoly.
- Understand the economic ramifications of monopolies, such as profits, losses, and efficiencies.
Verified Answer
KI
Kylie IngersollJun 26, 2024
Final Answer :
False
Explanation :
Being the sole seller does not guarantee positive economic profits due to potential high costs, demand elasticity, and regulatory constraints that can impact the monopolist's ability to generate profits.
Learning Objectives
- Understand the economic ramifications of monopolies, such as profits, losses, and efficiencies.