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How is price determined in a monopoly to produce maximum profits?
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Excessive monopoly profits represent?
Note: 'Excessive' is not an objective term to use for economics analysis. Monopoly profits usually represent a form of price mark-up, setting MC = MR and then vertically matching the maximum willingness-to-pay for that unit and all units before it on the demand curve. This is socially inefficient but privately optimal.
What is the position of supernormal profits for a firm that is a monopoly?
true
Can a monopoly earn economic profits in the short run?
yes it is
Can a monopoly earn economic profits in the long run?
Yes
What is the main idea of king monopoly cartoon?
The King Monopoly is gaining all the profits from the laborers' hard work
How does a monopoly increases a corporations profits?
by eliminating competition to control prices
A cartel differs from a monopoly in that?
a cartel is a group that agrees to charge monopoly price and quantity, splitting quantity amongst themselves. so a monopoly is one company and a cartel is a group. Profits are lower for cartel members because they only produce a total quantity that is equal to a monopolists production. novanet-businesses making the same product agree to limit production
Does a monopoly produce at the inelastic or elastic part of the demand curve?
A monopoly typically produces in the inelastic part of the demand curve because it has control over the quantity supplied and can set prices higher without losing too many customers. This allows the monopoly to maximize its profits by charging higher prices for its products.
What does the booty in the cartoon king monopoly' represent?
Excess profits piling up from tariffs and business combinations.
Will a monopoly always produce at a profit-maximizing level of output?
Most businesses aim to operate at its profit-maximizing level at all times, but many factors make this nearly impossible. For instance, if they are short on workers they wouldn't be able to maximize profits.
In what market structures is it possible for Firms to make positive profit in the long run?
Monopoly and Oligopoly are both the only firms that may make positive profit in the long run. Under LONG-RUN MARKET TENDENCY OF PRICE AND ATC: Monopoly P>ATC and Oligopoly P>ATC both will have postive profits, however it possible to turn to zero profits if there isn't capitalization of the profits or any rent-seeking activities or if the market is contestable. But moreover, the answer you're looking for is the above that bother Monopoly and Oligopoly will have positive profit in the long run.
What is shared monopoly?
Shared or Joint monopoly refers to anticompetitive behaviour by firms, normally an oligopoly, in order to secure monopoly profits for the firms as a group. Essentially, shared monopoly requires some form of collusion but stops short of being a formal cartel. It is therefore similar to tacit collusion. In a shared monopoly firms may not compete for the same customers and have instead local monopolies.
