which of the following is a means by which a business could obtain a monopoly? course hero

Which of the following is a characteristic of a monopoly?

public good. b. externality. c. occupational licensing. d. monopoly. 1 points QUESTION 8 1. Which of the following is a means by which a business could obtain a monopoly? a. all of the above b. It could be protected from competition by tariffs, quotas, or other trade barriers

When does a firm have a monopoly?

If Kim is breaking even, then under the broad definition, is Kim's restaurant a monopoly? No. When is a firm a monopoly, or are monopolies only theoretical concepts that do not exist? A firm is a monopoly if it can ignore the actions of all other firms.

What are the barriers to entry of a monopoly?

A. the firm is a natural monopoly. B. there are close substitutes for the good the firm produces. C. firm is a single-price monopoly. D. firm is well protected from competition by a legal barrier.

Why are there no close substitutes for a monopoly?

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What are some of the reasons that a market could be a monopoly?

7 Causes of MonopoliesHigh Costs Scare Competition. One cause of natural monopolies are barriers to entry. ... Low Potential Profits Are Unattractive to Competitors. Potential profits are a key indicator to potential businesses. ... Ownership of a key resource. ... Patents. ... Restrictions on Imports. ... Baby Markets. ... Geographic Markets.

What are the 5 Sources of monopoly?

The sources of monopoly power include economies of scale, locational advantages, high sunk costs associated with entry, restricted ownership of key inputs, and government restrictions, such as exclusive franchises, licensing and certification requirements, and patents.

What are the four most important ways a firm becomes a monopoly?

The four main reasons a firm becomes a monopoly are: the government blocks entry, control of a key resource, network externalities, and economies of scale.

What are examples of monopoly?

A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.

What are monopolies in business?

A monopoly is when one company and its product dominate an entire industry whereby there is little to no competition and consumers must purchase that specific good or service from the one company. An oligopoly is when a small number of firms, as opposed to just one, dominate an entire industry.

What are the 4 types of monopoly?

Terms in this set (4)Natural monopoly. A market situation where it is most efficient for one business to make the product.Geographic monopoly. Monopoly because of location (absence of other sellers).Technological monopoly. ... Government monopoly.

What are the four most important ways a firm becomes a monopoly Part 2 The four main reasons a firm becomes a monopoly are?

The four main reasons a firm becomes a monopoly​ are: the government blocks​ entry, control of a key​ resource, network​ externalities, and economies of scale.

What is the definition of monopoly quizlet?

Monopoly Definition. a firm that is the sole seller of a product without close substitutes.

How does a monopoly differs from monopolistic competition quizlet?

a monopoly has market power while a firm in monopolistic competition does not have any market power. a monopoly can never make a loss but a firm in monopolistic competition can. a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.

What industry is a monopoly?

The U.S. markets that operate as monopolies or near-monopolies in the U.S. include providers of water, natural gas, telecommunications, and electricity.

Which company has monopoly in India?

Some of the monopoly shares in India are IRCTC, HAL, Nestle, Coal India, Hindustan Zinc, ITC, Marico (Oil Products), Pidilite, Concor, and Bhel.Feb 6, 2022

What is meant by monopoly market?

A monopoly describes a market situation where one company owns all the market share and can control prices and output. A pure monopoly rarely occurs, but there are instances where companies own a large portion of the market share, and ant-trust laws apply.

What are the barriers to entry in a monopoly?

Second, there are high barriers to entry. These barriers are so high that they prevent any other firm from entering the market. Third, there are no close substitutes for the good the monopoly firm produces.

What is the difference between a monopolistic market and a perfectly competitive market?

In contrast, in a monopolistic market there is only one firm, which is large in size. This one firm provides all of the market's supply. Hence, in a monopolistic market, there is no difference between the firm's supply and market supply.

How do monopolies arise?

For example, a local telephone company's marginal and average costs tend to decline as it adds more customers; as the company increases its network of telephone lines, it costs the company less and less to add additional customers .

What is monopolistic market structure?

Limited access to resources: A monopolistic market structure is likely to arise when access to resources needed for production is limited. The market for diamonds, for example, is dominated by a single firm that owns most of the world's diamond mines. Natural monopolies.

What is barrier to entry?

A barrier to entry is anything that prevents firms from entering a market. Many types of barriers to entry give rise to a monopolistic market structure. Some of the more common barriers to entry are.