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Monopolies

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Why are monopolies bad for society? Please name 3 firms and discuss reasons how they maintain their monopoly status; and make predictions on how long these firms will stay monopolies.

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Solution Summary

Monopolies are dissected in negative consequences.

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Monopolies are usually considered bad for the economy because the deadweight loss in monopolistic society is quite high when compared to perfect competition. This is because while the profit maximization condition of MR = MC remains the same, the monopolist sells the goods at a price here ...

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