A monopolist must obtain a minimum of a(n)
profit in the long run, or it will go out of business.

Question

A monopolist must obtain a minimum of a(n) 
 profit in the long run, or it will go out of business.

BlackTom AI · Accepted Answer

The question asks to fill in the blank in the sentence: 'A monopolist must obtain a minimum of a(n) _____ profit in the long run, or it will go out of business.'

Option presented: 空白1

Discussion of the concept:
- Normal profit is the level of profit that covers all opportunity costs of the inputs supplied by the owners; it is, in essence, the break-even level that allows a firm to stay in business without earning excess economic profit or incurring an economic loss.
- In long-run analysis, firms should earn at least normal profit to justify continuing operations; if total costs (including opportunity costs) exceed total revenue, the firm would be economically unprofitable and would exit the market if exit is feasible.
- For a monopolist, even though there are barriers to entry that prevent other firms from entering, the fundamental economic logic of normal profit still serves as the threshold where the firm is just covering its opportunity costs. If a monopolist earned less than normal profit, it would be sacrificing resources that could be used elsewhere, which is not sustainable in the long run.
- Therefore, the sentence correctly uses 'normal' to denote the minimum acceptable level of profit that ensures the business covers all costs in the long run, including opportunity costs.

Why this option is correct:
- It directly identifies the standard microeconomic concept of normal profit as the minimum required to stay in business over the long term, aligning with the idea that firms must at least cover their opportunity costs.

Why other possibilities (if any) would be incorrect:
- If the blank implied any term other than 'normal,' it would fail to capture the essential threshold of covering both explicit and implicit costs. For example, using a term like 'economic' or 'supernormal' would imply profits above normal, which is not the minimum necessary to remain in business, and using something like 'zero' would ignore opportunity costs and the true break-even notion.
- Since the provided options list only the single blank, there are no alternative choices to evaluate here, but conceptually, the justification rests on the normal profit idea described above.

In summary, the term that completes the sentence as a meaningful economic threshold for long-run viability is 'normal' profit, because it represents the minimum level of profit that covers all costs, including opportunity costs, allowing the monopolist to continue operating.

A monopolist must obtain a minimum of a(n) profit in the long run, or it will go out of business.

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