Answer to Question #196513 in Macroeconomics for esther amponsah

Question

Economic profits result whenever only a few large competitors are active in a given market.” Discuss this statement

Answer 1

The demand side, current market share, and competitors all have an effect on economic profits.

In a market with only a few large rivals, the selling of a specific product or service is restricted to those firms. These businesses dominate the market and, on occasion, erect barriers to entry for new businesses.