Amonopoly can earn positive profits because it a. can sell unlimited quantities at any price it chooses. b. takes the market price as given and can sell unlimited quantities. c. can set the price it charges for its output but faces a horizontal demand curve. d. can maintain a price such that total revenues will exceed total costs.

The correct answer is option d.

Explanation:

A monopoly firm is a price maker, which means that it decides its price level. Unlike perfect competition where firms are price takers and price is determined by market forces.

So, unlike perfect competition monopoly firms can earn positive profits even in the long run because they can fix the price at a point where the total revenue earned from the sale of the product is higher than the total cost incurred in producing that product.

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