Buy custom Why Is Monopolies Harmful And How Can Regulation Ameliorate These Harm
Essay's paper info
| Topic: |
Business
|
| Number of pages / Number of words: |
4 / 850 |
Essay's paper body
This argument leads to the conclusion that
monopolies have higher cost curves than firms under perfect competition(Assuming
that the monopolist does not use supernormal profits to finance research and
development and hence reduce costs. ).
Even if a monopolist does invest in research and development, although prices
will fall and output will rise, extra supernormal profits received will merely
accumulate with old profits...
Essay fragment
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).
Even if a monopolist does invest in research and development, although prices
will fall and output will rise, extra supernormal profits received will merely
accumulate with old profits. These high profits lead to the question of
distribution of income. The answer to this question is a normative one and is
thus subject to much controversy...
Essay fragment
General points of the essay
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