Question 21
Market StructuresIn which of the following markets does a firm have power to make super normal profits both in the short run and long run?
- A.Monopoly
- B.Duopoly
- C.Oligopoly
- D.Monopsony
Show the answer and explanation
Answer: A (Monopoly)
Explanation
Barriers to entry stop new firms from competing away a monopolist's abnormal profit.