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

16174 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

How can the central bank affect economic activity using monetary policy


What is the best market structure?


How are is consumer and producer suplus shown on a diagram of supply and demand? How are both the division and amount of total surplus determined?


Explain what is meant by the rate of inflation and  analyse the main causes of inflation


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:

© 2026 by IXL Learning