A monopoly exists because of
A)barriers to entry
B)the large number of buyers and sellers
C)the absence of barriers to entry
D)collusion among the dominant firms
E)the absence of exclusive government franchises

Question

Quizplus · Accepted Answer

A monopoly exists because of barriers to entry. This means that there are obstacles that prevent new firms from entering the market and competing with the existing dominant firm. These barriers can be natural, such as high start-up costs or economies of scale that make it difficult for new firms to compete, or they can be artificial, such as government regulations or exclusive patents.

A Monopoly Exists Because of