In the short run,a monopolist's economic profits:

A) are always positive because the monopolist is a price-maker.
B) are usually negative because of government price regulation.
C) are always zero because consumers prefer to buy from competitive sellers.
D) may be positive or negative depending on market demand and cost conditions.

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Kailey McCaffrey · Accepted Answer

Final Answer : D, Explanation :  In the short run, a monopolist's economic profits may be positive or negative depending on market demand and cost conditions. A monopolist is a price-maker and can set the price higher than the marginal cost, which may result in positive economic profits, but if the demand is low and the cost is high, the monopolist may experience negative economic profits. Thus, option D is correct as it acknowledges both possibly positive or negative profits depending on conditions. Options A, B, and C are incorrect as they present extreme and inaccurate statements.

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