Which of the following contributes to a firm maintaining a monopoly?
A)Exclusive franchises.
B)The existence of substitute goods.
C)A large number of firms in the industry.

Question

Quizplus · Accepted Answer

Exclusive franchises can be a significant barrier to entry for potential competitors, allowing the firm with the franchise to maintain a monopoly. The existence of substitute goods and a large number of firms in the industry both make it easier for new competitors to enter the market, reducing the firm's monopoly power.

Which of the Following Contributes to a Firm Maintaining a Monopoly