Entrepreneur's monopoly in the local market conditions

Business and marketing

Profit maximization on the sale at the highest price is possible if an entrepreneur is a monopolist at the local market. The right of getting a monopoly profit achieves by a hard competitive activity, when the price is reduced lower then the level of marginal production costs for the purpose of other entrepreneurs ejection. Afterwards the raised prices will attract entrepreneurs at the local market again, but at that time when the business rivals are over, the entrepreneur gets the maximum profit.