Due to entry obstacles that prohibit rival companies from joining the market and splitting the profits, monopolies can generate positive economic profit over the long term.
Entry barriers allow monopolists to eventually turn a profit. Monopolies create welfare losses because, at the level of output that maximizes profits, the additional gains from increasing output would outweigh the additional costs.
The existence of considerable entry barriers prevents enterprises from entering the market even in the long run. As a result, the monopolist is able to avoid competition and keep enjoying long-term financial benefits.
To know more about monopoly market visit :
brainly.com/question/22934249
#SPJ4
