Previously monopolistic on a global scale

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Dumping and predatory pricing involve selling at very low prices, even below cost, for the purpose of driving competitors out of business. If a firm were to succeed it would be a monopoly and could raise prices accordingly. Unfortunately, most economists have failed to observe any situations such as this. Why would a predatory monopoly have difficulty driving out competitors, raising prices, and sustaining economic profits in the long-run in a market that was previously monopolistic on a global scale? Is there any particular feature of purely competitive or monopolistically competitive markets that suggests there is no basis for anti-trust laws within these markets?

Reference no: EM13815496

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