Which of the following is a key element to preserving a monopoly?
A) keeping potential rivals out of the market
B) increased advertising expenditures
C) guaranteeing the availability of substitute products
D) government subsidization of critical enterprises

Question

Quizplus · Accepted Answer

Keeping potential rivals out of the market is a key element to preserving a monopoly. By limiting competition, a monopoly can maintain its market power and prevent new entrants from challenging its dominant position. This is often achieved through various barriers to entry, such as patents, high start-up costs, or exclusive control over key resources or distribution channels. Increased advertising expenditures, guaranteeing the availability of substitute products, and government subsidization are not necessarily key elements to preserving a monopoly.

Which of the Following Is a Key Element to Preserving