Question

While in the short run an economic profit is more likely in an unregulated monopoly, ___________ may group competing resources and create a new power base to challenge the existing monopoly.

Answer 1

While in the short run an economic profit is more likely in an unregulated monopoly, any of the above may group competing resources and create a new power base to challenge the existing monopoly.

Unregulated monopolies have market power and can affect prices. Examples: Microsoft and Windows, DeBeers and Diamonds, and local natural gas companies. Individual restaurants and other products that enjoy "brand loyalty" in a highly competitive market choose prices and production in the same way as monopolies.

Unregulated monopoly: Standard calculations show that an unregulated monopoly produces y = 80 and the price is p = 60. AR (y) = (200y) / 2. y = 150 or 10. Therefore, there are two outputs, AC = AR: 10 and 150.

An unregulated monopoly provider is probably inefficient when it comes to allocations, as the price of a monopoly is higher than the MC. In a highly competitive market, prices will be lower and more consumers will benefit from purchasing goods. Monopoly leads to a loss of surplus welfare for consumers and producers.

Learn more about monopoly here: brainly.com/question/13113415

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