Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Why are monopolies unlikely to persist in the real world? Monopoly profits attract competitors and regulators which eventually decreases the firm's market power Innovation leads

Why are monopolies unlikely to persist in the real world?

Monopoly profits attract competitors and regulators which eventually decreases the firm's market power

Innovation leads to creative destruction which eventually increases market concentration

Monopolists do not maximize their producer surplus when they price above marginal cost

Total costs costs are not minimized with one supplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Macroeconomics

Authors: Robin Bade, Michael Parkin

6th edition

132831007, 978-0132831000

More Books

Students also viewed these Economics questions

Question

1. What is the meaning of the information we are collecting?

Answered: 1 week ago

Question

3. How much information do we need to collect?

Answered: 1 week ago

Question

2. What types of information are we collecting?

Answered: 1 week ago