To maintain a monopoly, a firm must have
A)a perfectly inelastic demand.
B)an insurmountable barrier to entry.
C)marginal revenue equal to demand.
D)few competitors.

Question

Quizplus · Accepted Answer

An insurmountable barrier to entry is necessary for a firm to maintain a monopoly. This can be in the form of patents, control over natural resources, or economies of scale that make it difficult for new firms to enter the market. The other options, such as perfectly inelastic demand or few competitors, may contribute to a firm's ability to maintain a monopoly but are not necessary factors.

To Maintain a Monopoly, a Firm Must Have