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mr_godi [17]
3 years ago
12

A company has a monopoly on a glue used in TVs and phones. The company can make as much of the glue as it wants. It chooses to m

ake less glue than it is able. Why?
Social Studies
2 answers:
ValentinkaMS [17]3 years ago
5 0
If the company would overproduce glue, the company could go bankrupt, due to overproduction.
eimsori [14]3 years ago
5 0

Answer: The bring more value towards the glue.

Explanation: The answer has nothing to do with overproduction. It is based on simple creation of value. Sometimes to increase the value of a certain product is not producing it more than it is required. So in order to increase the value of the glue the company decided to shorten the volume of the glue produced in order to keep its price higher. This will then enable the company to charge more keep its production cost constant. As long as the profits keeps on coming in the company can afford to make the less of that item (in this case the item is glue).

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