![]() They can take advantage of economies of scale and keep prices low, at least for a while. Monopolies may not always be a bad thing. This creates a large amount of deadweight loss and enhances producer surplus at the expense of consumer surplus. Economists view monopolies as inefficient because they face no competition, and can thus charge higher prices (PM) than the market rate otherwise might be (PC). ![]() ![]() A monopoly exists when there is only one company or entity supplying some product on the market.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |