Monday, March 17, 2014

Do monopolies always make profits?

Do monopolies always make profits?
Almost always. It is possible that a private firm could have a monopoly of some wholly unprofitable activity but it would probably discontinue it or else not exist for much longer.

Unprofitable but necessary activities are often passed to some arm of government. For example, local government will often have a monopoly of fire-fighting services.

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