Buying a monopoly from the existing owner does not ensure an economic profit because
A) competition among buyers drives up the cost of buying the firm.
B) profits equal zero in the long run anyway.
C) of the deadweight loss triangle.
D) the market for monopolies is a monopoly.

Question

Quizplus · Accepted Answer

The price to buy the firm often reflects its monopoly profits, meaning the buyer pays a premium upfront, which can negate future economic profits due to competition among buyers.

Buying a Monopoly from the Existing Owner Does Not Ensure