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Almost always. It is possible that a private firm could have a monopoly of some wholly unprofitable activity but it would probably discontinue it or else not exist for much longer.
Unprofitable but necessary activities are often passed to some arm of government. For example, local government will often have a monopoly of fire-fighting services.
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Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
What was formed with the goals of eliminating competitors and increasing their own profits?
Monopolies
What did cartels monopolies and trusts as well as horizontal and vertical integration all share a goal of?
cartels, monopolies, trust, and horizontal and vertical integration all share the goal of
Can monopolies make abnormal profits in the long run?
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.
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
What was formed with the goals of eliminating competitors and increasing their own profits?
Monopolies
What did cartels monopolies and trusts as well as horizontal and vertical integration all share a goal of?
cartels, monopolies, trust, and horizontal and vertical integration all share the goal of
Can monopolies make abnormal profits in the long run?
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.
Why did business leaders form trusts in the late 1800s?
They were used to take over small business, and form monopolies.
What were formed with goals of eliminating competitors and increasing their own profits?
These were monopolies and trusts. The owners of these wanted to be the only distributors so they could raise the prices as high as they wanted.
What were formed with the goals of eliminating competitors and increasing their own profits?
These were monopolies and trusts. The owners of these wanted to be the only distributors so they could raise the prices as high as they wanted.
What were monopolies?
Monopolies were, and still are, organisations usually businesses, that have no competition for the product or service they sell. Consequently they could set the price they wanted. Many countries passed legislation to limit this, not always successfully.
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.
People who opposed monopolies argued that monopolies?
Eliminated competition
What did Woodrow Wilson view monopolies as being?
monopolies were bad
