Economics 9708 · AS & A Level · 7.6

7.6 — practice question

A monopoly firm earns only normal profit in the long run. What is the most likely explanation for this?

  • AThe firm has decreasing long-run average costs.
  • BThe firm is a public company with numerous shareholders.
  • CThe firm is owned by a small number of financial institutions.
  • DThe market in this industry is highly contestable.

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