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[fourteen] In such cases, the monopolist can set its cost at any stage it wants, preserving a substantial economic profit. In both equally eventualities, corporations can easily maintain an economic profit by location costs very well above the costs of output, receiving an revenue that's drastically much more than its implicit and explicit fees. Govt intervention[edit]
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The government examined the monopoly's fees, and determined whether or not the monopoly should be capable increase its value. If The federal government felt which the Charge did not justify a greater price tag, it rejected the monopoly's application for a better cost. Nevertheless a regulated business won't have an economic profit as big as it could within an unregulated circumstance, it can still make profits very well over a competitive firm in A very aggressive marketplace.[9] Maximization[edit]
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