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Economics Homework Nine Answers - Student Ten (view source)
Revision as of 16:55, November 12, 2009
, 16:55, November 12, 2009no edit summary
'''4. List how monopolies can be established.'''
'''4. List how monopolies can be established.'''
The licensing of professionals creates a barrier to entry.
Control of a valuable resource can also create a monopoly.
Economies of scale can create a monopoly by rewarding the biggest company with the lowest average cost.
Government grants of monopoly such as patents and copyrights.
'''5. What prevents a monopoly from increasing its prices without limitation?'''
'''5. What prevents a monopoly from increasing its prices without limitation?'''
When the MR=MC,the price is usually set. the demand curve still applies to monopoles the availability of substitutes may also limit the price.