Does monopolist ever takes loss?
Answer:
No. Profits will always be positive, unless the demand for the product is perfectly elastic. In that case, they will be zero.
Here is a nice diagram illustrating monopoly profits:
http://en.wikipedia.org/wiki/monopoly_pr...
when a competitor emerges, a monopolist always is at a great loss.
In the short run, when the monopolist has both fixed costs and variable costs, it is possible for the profit maximizing price and quantity combination to result in negative profit (i.e., a loss). This happens whenever the profit maximizing price (the price where marginal revenue equals marginal cost) is above average variable cost but below average total cost. In this case the monopolist earns enough revenue to cover all variable costs and still have some left over to pay part of its fixed costs.
Sometimes. It usually occurs when the market is regulated i.e power companies, cable, etc or due to elasticity of demand (people get fed up). It happens when the Average total cost (ATC) is greater than the set price (P). As with every business when there is shrinking demand or higher cost a loss will happen.
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