Asked by ilenia
Can somone tell me what are the factors that indicate monopoly plsss??? 10x alot :D
Answers
Answered by
economyst
For a true monopoly, there is only one factor. A monopoly is the one and only provider of a particular good or the one and only provider of a particular service.
Or are you asking: what are some factors that give rise to a monopoly? In this case, we can indentify several factors.
1) Long run declining average costs (or constant increasing returns to scale) This gives rise to a natural monoploy.
2) sole (or limited) ownership of a critical resource needed to make a product or provide a service.
3) Patent protection laws and copyright protection laws.
4) Sole production rights granted and protected by a government authority.
5) Firms keeping out the competition by nefarious acts.
6) etc.
Or are you asking: what are some factors that give rise to a monopoly? In this case, we can indentify several factors.
1) Long run declining average costs (or constant increasing returns to scale) This gives rise to a natural monoploy.
2) sole (or limited) ownership of a critical resource needed to make a product or provide a service.
3) Patent protection laws and copyright protection laws.
4) Sole production rights granted and protected by a government authority.
5) Firms keeping out the competition by nefarious acts.
6) etc.
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