If a producer wants a monopoly with a legal barrier to entry,how can this be done?
i.The producer can spend funds lobbying to attain passage of the legal barrier to entry.
ii.The producer can purchase an existing monopoly.
iii.The producer can make rent seeking expenditures.
A) i and ii
B) i and iii
C) ii and iii
D) i, ii, and iii
E) None of the above are ways to acquire a monopoly with a legal barrier to entry.

Question

Quizplus · Accepted Answer

All three options are viable strategies for a producer to establish or maintain a monopoly with a legal barrier to entry. Lobbying for legislation that creates barriers, purchasing an existing monopoly, and making rent-seeking expenditures to influence policy or regulation can all effectively create or sustain a monopoly position protected by legal barriers.

If a Producer Wants a Monopoly with a Legal Barrier