Why does monopoly make long run economic profit and exploit consumers?

No competition

Explanation:

Monopolies by definition have little to no competition as they control a significant proportion of the market and there are usually high barriers to entry.

In the long run in a competitive market, companies eventually stop making economic profits because other companies come in and drive down the price by increasing quantity. As this does not happen with monopolies, they are able to maintain Economic profits all the way into the long run.

Another consequence of monopolies is that they can exploit customers by increasing prices more than they should. Customers will still buy at this price because they will have no alternatives as there are no competitors offering them. This is why in some cases, Governments step in and regulate the prices that monopolies can charge because if left alone, they will probably take advantage of the power they wield and exploit the masses.

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