Practice question · Select all that apply
Which are sources of monopoly power?
Hints
- Each source creates a barrier to entry.
- Many small sellers is the opposite of market power.
Show the answer
- A. Control of an essential resource
- B. Patents and legal barriers
- C. Economies of scale (natural monopoly)
Why
Many small firms is the hallmark of competition, not monopoly. Patents, scale economies, and resource control create market power.
Practise Monopoly
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