The economic profits of many monopoly firms are reduced as a result of

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Rent-seeking activity and government regulation can both reduce the economic profits of monopoly firms. Rent-seeking activity refers to the use of resources (such as lobbying) to maintain or increase one's economic profits, which can lead to inefficiencies and ultimately reduce overall profits. Government regulation can also limit a monopoly's ability to maximize profits, by imposing price controls or other restrictions. Therefore, both rent-seeking activity and government regulation can reduce the economic profits of monopoly firms.

The Economic Profits of Many Monopoly Firms Are Reduced as a Result