Changes

Who enjoys true economic profits?  Monopolies do, because they can increase their price and reap economic rents.  Apple garners hefty profits year after year for its patented designs on the iPhone, with no end in sight.  But ultimately all monopolies, even Apple and Microsoft, fall prey to competition and those economic profits dry up.

Who enjoys true economic profits?  Monopolies do, because they can increase their price and reap economic rents.  Apple garners hefty profits year after year for its patented designs on the iPhone, with no end in sight.  But ultimately all monopolies, even Apple and Microsoft, fall prey to competition and those economic profits dry up.

Inventors and other innovators can enjoy real economic profits.  Thomas Edison did, with his numerous marvelous patented inventions.  Patents give the holder an exclusive right to the product for 17 years.  Competition is prevented for that time, and enormous economic profits can be obtained without competition driving the price down.  AT&T used Alexander Graham Bell’s patent on the telephone to build a highly profitable company for a century.  But ultimately its economic profits dried up, too.

Inventors and other innovators can enjoy real economic profits.  Thomas Edison did, with his numerous marvelous patented inventions.  Patents give the holder an exclusive right to the product for 20 years.  Competition is prevented for that time, and enormous economic profits can be obtained without competition driving the price down.  AT&T used Alexander Graham Bell’s patent on the telephone to build a highly profitable company for a century.  But ultimately its economic profits dried up, too.

===Honors:  Is "economic rent" the same as "deadweight loss"?===

===Honors:  Is "economic rent" the same as "deadweight loss"?===