A monopoly may exist because
A)government has refused to grant a public franchise.
B)one firm has the exclusive ownership of a necessary resource.
C)the firm is so large and is currently experiencing such vast diseconomies of scale that it can out-compete all newcomers.
D)of diseconomies of scale.

Question

Quizplus · Accepted Answer

A monopoly may exist if one firm has the exclusive ownership of a necessary resource, making it difficult for any other firms to enter the market and compete. This is known as a resource monopoly.

A Monopoly May Exist Because