The fact that some large firms are earning positive profits while smaller firms in the same industry are losing money is not in itself an indication of monopoly power.

Question

Quizplus · Accepted Answer

The difference in profitability between large and small firms could be due to a variety of factors such as economies of scale, differences in production efficiency, access to resources, or differences in marketing strategies. Therefore, it cannot be concluded that the large firms have monopoly power solely based on their profitability.

The Fact That Some Large Firms Are Earning Positive Profits