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

16831 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is fiscal policy?


"What are the causes of an appreciation (outward shift of demand) for a floating exchange rate?"


How are inflation and unemployment linked?


What is cost push 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