Can a monopoly break even?

In the long-run, the demand curve of a firm in a monopolistic competitive market will shift so that it is tangent to the firm's average total cost curve. As a result, this will make it impossible for the firm to make economic profit; it will only be able to break even.

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2023-11-09 06:43:17

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Why break up a monopoly?
Often regulators break up monopolies or intervene to keep a large company from unduly dominating the market. However, sometimes the amount of resources required to perform a service is so extensive that it is more efficient to have only one company in a region serve the market. Utility companies are a good example.
2024-03-21 23:03:25

What are 3 threats to a monopoly?
The disadvantages of monopolies include price-fixing, low-quality products, lack of incentive for innovation, and cost-push inflation.
2024-02-20 08:48:02

How long should a monopoly game last?
When played with standard rules, a typical game takes 60 to 90 minutes. When common house rules are added, such as collecting money on free parking and not auctioning unpurchased properties, games can last 3 hours or longer.
2024-02-11 17:09:08

What makes a monopoly efficient?
Firms benefit from monopoly power because: They can charge higher prices and make more profit than in a competitive market. The can benefit from economies of scale – by increasing size they can experience lower average costs – important for industries with high fixed costs and scope for specialisation.
2024-01-18 23:18:16

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