567)662 MINDTAP Homework (Ch 15) 6 Due Tomorrow an 7 PM PST 1. Sources of monopo

Question

567)662 MINDTAP Homework (Ch 15) 6 Due Tomorrow an 7 PM PST 1. Sources of monopoly power A monopolist, unlike a competitive firm, has some market power. It can raise its price, within lemits without the quantity demanded falling to zero The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry Co plete the following table by indicating which bemer to entry .pproeriately nxpans why m oly exists a,soenare. Barriers te Entry Created Key Resource In an imaginary country, there is only one federally icensed lotery agency in state; that is, it is impossible for any private firm to start up·compettive lottery without a government license to do so in the natural gas industry, low average total costs are obtained only theough large-scale production. In other words, the initial cest of setting up all the necessary pipes and hoses makes it risky and, most sikely, unprofitable for competitors to enter the market Troughout much of the 20th century, many people viewed South Africa's De Beers Group as a monopoly because it controlled a large percentage of diamond production and sales.

Explanation / Answer

Scenario 1 - Government created Monopolies (government grants a license to a particular firm which creates barriers to entry)

Scenario 2 - Economies of scale (Higher output production leads to lower average costs)

Scenario 3 - Exclusive ownership of a key resource (De Beers Group controlled a large percentage of diamond production)

Related Questions

Navigate

• Browse (All)
• Browse 5
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.