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can a monopoly firm face loss?

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can a monopoly firm face loss?

Posted by A S 7 years ago

CBSE > Class 11 > Economics

2 answers

Chesta Pawan Manchanda 7 years ago

Yes but in long run. see monopoly is a price maker not taker so if it increases price, demand of that product decrease. And the other thing is if it starts selling it's product at cost it start gaining loss and this will be lead to shut down.

Gopal Maheshwari 7 years ago

Yea a monopoly firm can also face loss because monopoly firm is price maker and is only a single seller in the market but if monopoly firm will increase his product price then demand for that product will reduce and monopoly firm will face a loss

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