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attashe74 [19]
3 years ago
8

The monopoly firm has a patent that is about to expire. A new start-up firm has entered the market with a new method and has app

lied for patent protection. Which of the strategies below make the most economic sense for the monopoly firm?
Social Studies
1 answer:
lbvjy [14]3 years ago
5 0

Answer:

The correct answer to the following question will be "Acquire start-up firm  and Continue production".

Explanation:

  • Because of reasonable competition and comparatively low cost, a monopoly company can achieve long-term profit and continue or expand development.
  • After some time, a monopoly that persists in stopping the entrance of new companies or firms capable of producing its commodity would see its obstacles bypassed by inventions, and it is, therefore, necessary for a dominant corporation to adapt the business strategy and stay current with industry changes.
  • Hence purchasing the start-up company would make good business sense for themselves.
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