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What were some of the methods used by businessment to create monopolies and increase profits?
Wiki User
∙ 6y ago
1. Take over a major part of production. E.g. control the important resources, manufacturing, or information of a product
2. underprice the product to entice consumers to buy your product (while underpaying for the resources or the workers)
3. gather a legal right to a monopoly, E.g. copyrights
Wiki User
∙ 6y ago
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Can monopolies make abnormal profits in the long run?
Yes, they can. Since they have a low amount of competitors. This means the competitors won't be eating up their profits. They can exercise the method of putting a higher price at a lower output, therefore people who really need the product are forced to buy it. or example, if Apple was a monopoly they could increase the price of a mackbook to $4000 and people would still buy it and therefore they are increasing their profits. Monopolies could also put some of their profits in research and development so they will be non contestable and the consumers will appreciate the advanced technology therefore their growth will increase. This will increase or maintain their abnormal profits.
What was formed with the goals of eliminating competitors and increasing their own profits?
Monopolies
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Which would be the most likely cause of an increase in cooprate dividends?
an increase of corporate profits
Can monopolies make abnormal profits in the long run?
Yes, they can. Since they have a low amount of competitors. This means the competitors won't be eating up their profits. They can exercise the method of putting a higher price at a lower output, therefore people who really need the product are forced to buy it. or example, if Apple was a monopoly they could increase the price of a mackbook to $4000 and people would still buy it and therefore they are increasing their profits. Monopolies could also put some of their profits in research and development so they will be non contestable and the consumers will appreciate the advanced technology therefore their growth will increase. This will increase or maintain their abnormal profits.
What was formed with the goals of eliminating competitors and increasing their own profits?
Monopolies
Why do many governments in countries with market economies outlaw or control monopolies?
Monopolies can make excessive profits by over-charging consumers.
Why do many governments in countries with market economies control outlaw monopolies?
Monopolies can make excessive profits by over-charging consumers.
Which would be the most likely cause of an increase in cooprate dividends?
an increase of corporate profits
What did cartels monopolies and trusts as well as horizontal and vertical integration all share a goal of?
cartels, monopolies, trust, and horizontal and vertical integration all share the goal of
Valuation of goodwill and shares?
Goodwill is the advantage of good name or reputation of a business. It attracts customer & increase sales & profits. methods: arbitary, average profit, super profit, capitalisation, annuity, hidden goodwill methods.
What is Mcvities mission?
To increase profits
What are international marketing objectives?
to increase profits
An increase in sales and profits generates the necessary cash required for economic growth?
An increase in sales and profits does not necessarily mean an economy will grow. The economy will only grow if the sales and profits are substantial in size.
How would you explain a large increase in dividends?
A large dividend increase typically signals a significant increase in profits.
Advantages of capital from profits?
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