Gaynor is the only manufacturer of gas pumps that automatically refill. Gaynor can earn a profit on the sale of these gas pumps a. in the short run but not in the long run because new firms will enter the industry in the long run. b. in the long run but not the short run because the monopolist will face competition in the short run. c. only in the long run because government regulations prevent monopolists from earning profits in the short run. d. in the long and short run because entry into the industry by new firms is blocked.
Gaynor is the only manufacturer of gas pumps that automatically refill. Gaynor can earn a profit on the sale of these gas pumps a. in the short run but not in the long run because new firms will enter the industry in the long run. b. in the long run but not the short run because the monopolist will face competition in the short run. c. only in the long run because government regulations prevent monopolists from earning profits in the short run. d. in the long and short run because entry into the industry by new firms is blocked.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Gaynor is the only manufacturer of gas pumps that automatically refill. Gaynor can earn a profit on the sale of these gas pumps
a. in the short run but not in the long run because new firms will enter the industry in the long run.
b. in the long run but not the short run because the monopolist will face competition in the short run.
c. only in the long run because government regulations prevent monopolists from earning profits in the short run.
d. in the long and short run because entry into the industry by new firms is blocked.
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