The most common source of market power is
A) a government franchise.
B) patents.
C) copyright.
D) economies of scale.
E) sole ownership of an important input.

Question

Quizplus · Accepted Answer

Economies of scale can result in a company having lower per-unit costs than its competitors, making it difficult for other firms to enter the market or compete effectively. This can lead to market power for the company with economies of scale.

The Most Common Source of Market Power Is