Smartphone companies protect their monopolies over new products they develop by utilizing

Question

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Smartphone companies protect their monopolies by utilizing patent protection, which grants them exclusive rights to produce and market their product for a limited period of time. This allows them to generate revenue and recoup their R&D costs before competitors can enter the market with similar products. Low cost production strategies and diseconomies of scale may provide temporary advantages, but they do not provide the same level of protection as patent protection. Zero economic profits in the long run may be a consequence of fierce competition in the market, but it is not a deliberate strategy employed by companies to protect their monopolies.

Smartphone Companies Protect Their Monopolies Over New Products They Develop