1. Abnormal profit may mean little incentive to be dynamically efficient and develop new products.
2. High prices and lower output for consumers, reduced consumer surplus.
3. Can waste resources by using profits from one part of the business to finance losses in another.
4. May engage in price discrimination to raise producer surplus, reducing consumer surplus
5. Produce at allocatively and productively inefficient levels.
6. Deny consumers variety and choice which is available in competitive markets
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