Why do barriers to entry allow a monopolist to make positive economic profits?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aIt causes the monopoly to have lower costs.bOtherwise, firms would enter the market, resulting in a decrease in price and profits.cIt allows the monopoly to be price-takers.dIt does not need a barrier to entry because of the market demand.

The correct answer is b. Barriers to entry allow a monopolist to make positive economic profits because otherwise, firms would enter the market, resulting in a decrease in price and profits.

Here's a step-by-step explanation:

1. Barriers to entry are factors that make it difficult for new firms to enter a market. These can include things like high startup costs, patents, brand loyalty, and government regulations.

2. When there are high barriers to entry, it's hard for new companies to compete with the monopolist. This means the monopolist faces little to no competition.

3. Without competition, the monopolist can set prices higher than in a competitive market. This is because consumers have no alternatives, so they are forced to pay the higher price.

4. As a result, the monopolist can earn positive economic profits. If there were no barriers to entry, other firms would enter the market, increase the supply, which would decrease the price and the monopolist's profits.

The correct answer is b. Barriers to entry allow a monopolist to make positive economic profits because they prevent other firms from entering the market. If there were no barriers to entry, other firms would enter the market, increasing the supply of the product, which would result in a decrease in its price. Consequently, the monopolist's profits would decrease. Therefore, barriers to entry are crucial for a monopolist to maintain high prices and earn positive economic profits.

The correct answer is b. Barriers to entry allow a monopolist to make positive economic profits because otherwise, firms would enter the market, resulting in a decrease in price and profits.

Here's why: In a market with no barriers to entry, if a firm is making positive economic profits, other firms will be incentivized to enter the market. As these new firms enter, they increase the supply of the product or service, which drives down the price. As the price decreases, so do the profits of the original firm.

However, when there are barriers to entry, other firms cannot easily enter the market. This allows the monopolist to maintain high prices and continue earning positive economic profits.