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Yes, they can. Since they have a low amount of competitors. This means the competitors won't be eating up their profits. They can exercise the method of putting a higher price at a lower output, therefore people who really need the product are forced to buy it. or example, if Apple was a monopoly they could increase the price of a mackbook to $4000 and people would still buy it and therefore they are increasing their profits. Monopolies could also put some of their profits in research and development so they will be non contestable and the consumers will appreciate the advanced technology therefore their growth will increase. This will increase or maintain their abnormal profits.
What else can I help you with?
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
What are the features of a monopoly that enable it to make abnormal profit?
A monopoly can make abnormal profit due to its unique market position, characterized by a single seller dominating the supply of a particular product or service. This lack of competition allows the monopoly to set prices above marginal costs, maximizing its profit margins. Additionally, monopolies often benefit from barriers to entry, such as high startup costs or regulatory restrictions, which prevent other firms from entering the market and eroding their profit. As a result, monopolies can sustain higher prices and profits over time.
Why did businesses pay employees low wages and make employees work long hours?
To make more profits for themselves.
What are the key differences between monopolistic competition in the short run and long run?
In the short run, firms in monopolistic competition can make profits or losses due to varying demand and costs. In the long run, firms can only make normal profits as new firms enter the market, increasing competition.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
What are the features of a monopoly that enable it to make abnormal profit?
A monopoly can make abnormal profit due to its unique market position, characterized by a single seller dominating the supply of a particular product or service. This lack of competition allows the monopoly to set prices above marginal costs, maximizing its profit margins. Additionally, monopolies often benefit from barriers to entry, such as high startup costs or regulatory restrictions, which prevent other firms from entering the market and eroding their profit. As a result, monopolies can sustain higher prices and profits over time.
Why did business leaders form trusts in the late 1800s?
They were used to take over small business, and form monopolies.
Why did businesses pay employees low wages and make employees work long hours?
To make more profits for themselves.
Why monopolistic competition in the short run making profit but in long run it would be break even?
In the short run a monopolistic firm can charge where MR=MC and that will be at a price that gains abnormal profits. They can do this in the short run because firms have a lag before they can be set up. But in the long run, the abnormal profits draw new firms into the industry and so this forces the firm to break even. Any profit at all- in theory- will draw in competitiors as there are limited barriers to entry.
What are the key differences between monopolistic competition in the short run and long run?
In the short run, firms in monopolistic competition can make profits or losses due to varying demand and costs. In the long run, firms can only make normal profits as new firms enter the market, increasing competition.
Why are monopolies known to be bad?
I think it is because people get jealous that others are more successful than them, so they convince an army of idiots to try to make monopolies illegal.
What kind of a profit is earned by perfect competition in the long run?
In the long period, economic profit cannot be sustained. The arrival of new firms or expansion of existing firms (if returns to scale are constant) in the market causes the (horizontal) demand curve of each individual firm to shift downward, bringing down at the same time the price, the average revenue and marginal revenue curve. The final outcome is that, in the long run, the firm will make only normal profit (zero economic profit).
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.
Does an abnormal thyroid make you tired?
yes
What is a sentence for smuggled?
If you can smuggle cocaine into the US from Columbia, you can make very big profits, at the risk of a very long jail sentence.
