Asked by Elizabeth Barkhudaryan on Jun 07, 2024
Verified
A monopoly can be losing money in the ___________,but not in the ___________.
A) short run;short run
B) long run;long run
C) long run;short run
D) short run;long run
Short Run
In economics, a period in which at least one factor of production is fixed, allowing for limited adjustments to changes in demand or supply.
Long Run
A period in economics where all resources and inputs can be fully adjusted or changed, contrasting with the short run where some are fixed.
- Comprehend the conditions under which monopolies can sustain profits or incur losses.
Verified Answer
LD
Laura DominguezJun 10, 2024
Final Answer :
D
Explanation :
A monopoly can incur losses in the short run due to high fixed costs or low demand. However, in the long run, a monopoly can adjust its operations (e.g., scale, scope, prices) to avoid losses, as it has market power to influence prices and control costs.
Learning Objectives
- Comprehend the conditions under which monopolies can sustain profits or incur losses.