Mataracy
VIP Contributor
Though it is possible for the profit to result from good fortune, lack of vigorous competition, luck, various market frictions and positions of advantage.
Competitions prevent firms yo exploit consumers most especially when firms are prevented from influencing the prices or otherwise rig the market to their own advantage.
In real life competition is as powerless as mirage you can think of. It is an illusion.
For instance unusual favourable locations for supermarkets Filling Stations, Hotels, Restaurants, Commercial Banks, shops and the likes give them distinct locational advantages over less favourable situated rivals.
Another example include the grant of trademarks, copyrights and patents. These enable the holder to legally exclude the competitors. It also make a firm to be in a better position to exercise monopoly power and thereby realise monopoly profit.
Do you think that there can be some sellers that can still be monopolistic is profit making in the market?
Contribute your own idea and it will really help.
Competitions prevent firms yo exploit consumers most especially when firms are prevented from influencing the prices or otherwise rig the market to their own advantage.
In real life competition is as powerless as mirage you can think of. It is an illusion.
For instance unusual favourable locations for supermarkets Filling Stations, Hotels, Restaurants, Commercial Banks, shops and the likes give them distinct locational advantages over less favourable situated rivals.
Another example include the grant of trademarks, copyrights and patents. These enable the holder to legally exclude the competitors. It also make a firm to be in a better position to exercise monopoly power and thereby realise monopoly profit.
Do you think that there can be some sellers that can still be monopolistic is profit making in the market?
Contribute your own idea and it will really help.
