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ntr87-C_202401645EN.000101-E0087

(87) When observed percentage profit margins are high, losing volume results in a relatively high loss in profit on the volumes lost. This implies a low ‘critical loss’ in volume to make a price increase by the hypothetical monopolist unprofitable. On the other hand, high observed profit margins can imply that the likely actual loss is also relatively low, because otherwise undertakings would not have raised prices to the observed level and would find it profitable to lower prices.

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Source: EUR-Lex (Cellar) · retrieved 2026-09-25 · Text as adopted (Official Journal); later amendments are not incorporated in this text.