Pure monopolists may obtain economic profits in the long run because:

Question

Zechariah Burke

Business

20 November, 14:38

Pure monopolists may obtain economic profits in the long run because:

+3

Answers (2)

Know the Answer?

Alvarez · Answer 1

Simply put it's because there's no one to be their opponent. This way, they'll profit either way since they are necessary and yet nobody can take away a piece of the profit by entering the business. These are rare but are mostly based on there being an invisible barrier that prevents people from entering the business. This way they are the only ones out there and you have to buy from them.

Devyn Graves · Answer 2

Pure monopolists may obtain economics profits in the long run because of barriers to entry.