Why does a monopolist have the best chance of making a long run economic profit?
What about the monopolistic cost structure make them candidates for a long-run economic profit?
Barriers to entry are designed to block potential entrants from entering a market profitably. They seek to protect the monopoly power of existing (incumbent) firms in an industry and therefore maintain supernormal (monopoly) profits. Barriers to entry have the effect of making a market ...
The solution determines why a monopolist has the best chance of making a long run economic profit.