Why are monopolies dynamically efficient?

Monopolies generate economic profit and are therefore better able to invest in research & development which may improve their productive effiency, making them more dynamically efficient over time. 

ZA
Answered by Zaynah A. Economics tutor

15964 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The price of tea in the UK increased from £7.20 per kilo to £8.48 per kilo. Over the same period the quantity of tea purchased fell from 97 million kilos to 76 million kilos. Calculate the price elasticity of demand for tea.


Explain the difference between productive efficiency and dynamic efficiency.


What is price elasticity of demand?


What is the difference between actual output and and potential output?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning