The entry of new firms is not a major concern.
Monopolists seek to maximize profits.
Monopolists can charge any price they want and make a profit. Monopolists can choose any point on the market demand curve. Monopolists can raise price more than 10 percent. Eli Whitney III receives a patent for the rayon gin, a product for which there are no close substitutes. In order to maximize profit or minimize loss in the short run, the firm should a. shut down b. continue to produce 1,000 units c. produce fewer than 1,000 units but still operate d. produce more than 1,000 units e. increase its plant size to gain economies of scale 11.