A monopoly firm may earn positive economic profits in the long run because:

a. it produces a homogeneous product.

b. it is the only firm that wishes to produce the product.

c. of high barriers to entry.

d. a and c

e. all of the above

The correct option is e. all of the above.

The monopoly firm may earn positive economic profits in the long run because the product they produce does not have any close substitute and unique for its uses. There are high barriers to entry as the firm dominates the resources in the economy and potential firms will be having a hard time entering the market dominated by a monopolist. The price is decided by the monopolist and thus removes whatever consumer welfare in the market.