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    Why monopolies might not maximize their profits

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    Why might monopolies find it in their long-term self-interest to not maximize their profits but to opt instead for an acceptable profit?

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    https://brainmass.com/economics/monopolies/monopolies-not-maximize-profits-159710

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    If a monopoly is in a sector where competition could emerge in the long-run, it might choose to reduce its profits to curtail such possible future competition. This would enable it to maintain its monopoly on the market. Excess profit inevitably attracts new firms, even to what looks like a natural ...

    Solution Summary

    This solution discusses when monopolies find it in their long-term self-interest to not maximize their profits.

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