... consumer as eventually the monopoly can use it to give a return on the initial capital cost. The ability to exploit consumers. This would come from high prices charged to the consumer. A monopoly is able to gain abnormal profit in both the short and long run, as long as the firm's average cost is lower than its average revenue. Predatory Pricing By doing this, prices will be at a low level, so as to defer potential companies from joining the industry as the know that they would not be able to produce at such a low cost, this benefits the consumer, as there is a lower price available. Misallocation of resources, leading to inefficiency. We assume that firms will aim to produce at the lowest possible cost curve, so to maximise profit, but, firms who are not under pressure due to competition, are likely to not produce at the lowest cost curve, and so ...

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