Question

Which of the following conditions would most likely permit a monopolist to continue earning economic profits even in the long run?
Loss of patent protection.
Significant barriers to entry.
Loss of control over a basic input.
A total revenue that is lower than fixed cost for all levels of output.
A price below average cost for all levels of output.
A cartel is
Found most of the time in monopolistic competition.
Usually exempt from antitrust laws in the United States.
Easier to maintain as the number of firms involved increases.
Unlikely to occur in international markets.
A formal collusive arrangement among firms.

Answer 1

Answer:

Question 1.

Significant barriers to entry.

Question 2.

A formal collusive arrangement among firms.

Explanation:

Question 1.

It is only when there are restrictions to entering a market that a monopolistic firm will continue to earn economic profit in the long run. That is, if it continues to be the only firm (without competitors) offering products or services.

Question 2.

Remember, a cartel is a unanimous agreement (or formal collusive arrangement) by a group of firms to regulate supply and prices of products in it's industry.