Question: A firm is observed making monopoly profits. Using dynamic analysis of monopoly, one would argue that: A.the firm's profits should be taxed away. B.the monopoly
A firm is observed making monopoly profits. Using dynamic analysis of monopoly, one would argue that:
A.the firm's profits should be taxed away.
B.the monopoly profits are not a concern as long as the firm is producing where P =MC.
C.the profits are a reward for successfully developing a new product and the firm should not be dealt with by antitrust or regulatory authorities.
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