Which of the following is not a reason that monopolies arise?
A) patents
B) economies of scale
C) excess competition
D) control of natural resources

Question

Quizplus · Accepted Answer

Excess competition is not a reason that monopolies arise. Monopolies arise due to several factors, including patents, economies of scale, control of natural resources, and legal barriers to entry. Excess competition can actually prevent a monopoly from arising as competitors will compete with each other, driving down prices and limiting market control for any one firm.

Which of the Following Is Not a Reason That Monopolies