A monopoly may arise due to
A) a patent.
B) net work externalities.
C) large economies of scale.
D) all of the above.

Question

Quizplus · Accepted Answer

A monopoly can arise due to a patent, which grants the holder exclusive rights to produce and sell a particular product or service for a certain period of time. Monopolies can also arise due to network externalities, which occur when the value of a product increases as more people use it. Large economies of scale can make it difficult for new firms to enter and compete in the market, further strengthening the monopoly's power. All of these factors can contribute to the establishment and maintenance of a monopoly.

A Monopoly May Arise Due to