De Beers: A Free-Market Cartel?
For supply and demand curves, see here. But to answer your question, basically yeah, it’s like I said, he has to worry about people getting their supply from a competitor, or switching to a substitute product, or simply not buying it. And in your specific scenario, he also has a time constraint because wheat has a shelf life (i.e. it will rot…meaning he can’t take forever to sell).
Again, I would also recommend you see the link on predatory pricing.
If this guy sees enough of opportunity to profit from this community, what makes you so sure someone else wouldn’t see the same opportunity and come in to meet a demand…that is, why exactly would not another opportunist come in with his own wheat supply and undercut the monopolist?
Because that price was such a loss that they would not be able to remain in business themselves for very long. They need to be able to keep making the bromine if there is any purpose in them trying to put someone else out of business. If you sell your entire revenue stream at a loss, where in the heck are you going to get the resources to continue making the product?
Again, see the link on predatory pricing.
Again, because the market finds a way to meet demand. People will find a substitute product, or another supplier will emerge, or the customers will simply buy less (or there will be less customers)…basically less volume sold.
Again the only way you can make something like this work is when you have government force to sure up your monopoly. See here.