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powelltabby | True or false a pure monopoly does not have to worry about losses? |
true or false a pure monopoly does not have to worry about losses? |
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linlyons
|
false.
depending on the necessity of the monopoly item or service.
when you ride an escalator, have you seen the little brushes on the sides, down near the stairs? the patten has just expired. the owner of the patten had a monopoly for 28 years. but nobody bought the product. as soon as there was no longer a monopoly, they're found on all escalators.
how many microwave ovens have you seen? Amana had a patent. and sold a few. as soon as the patent expired, many companies made and sold them.
so, it depends on the necessity of the item, and the price of producing it. |
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straight_up
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True, unless the nature of the business changes somehow, displeasing customers or not fulfilling their needs.... |
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Ryan M
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Loss in market share...no. Loss in profits, yes |
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Twinkie Thief
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true.... but it does have to have consumers or else the monopoly is worthless |
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shridhar vaidya
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Every business has responsibility to first achieve break even and to make profits, But afterwards also business profits are affected due to the prices of raw materials, labour,fixed costs rising while long term contracts with customers continue at fixed rates. In monopoly condition, it is necessary to increase level of production when demand increases and raising of resoources can be costlier,then. In monololy conditions also continuous control over working of costs is necessary. Secondly, to-days monopoly business often becomes pure competition due to the entry of new businessmen. |
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Lioness
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In a purely monopolistic state monetary losses wouldn't be an issue. However, if a company starts taking losses that could indicate that they are no longer a pure monopoly. So without more info the answer is yes no and maybe! |
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Thor
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If they are a true monopoly they will never have losses because they can set the price, within reason. |
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