A monopoly is likely to occur if it is the incumbent firm and there are significant barriers to entry.

Question

Quizplus · Accepted Answer

This statement is true. Incumbent firms may have advantages over potential entrants, such as established brand recognition, economies of scale, and established distribution networks. Barriers to entry, such as high startup costs or government regulations, can also prevent new competitors from entering the market, allowing the incumbent firm to maintain a monopoly.

A Monopoly Is Likely to Occur If It Is the Incumbent