The source(s) of monopoly power for a monopoly may be:

Question

Quizplus · Accepted Answer

All of the statements are sources of monopoly power for a monopoly. Economies of scale allow the firm to produce at lower cost than its competitors, giving it a competitive advantage. Economies of scope allow the firm to produce a wider range of goods and services at a lower cost than competitors, which can also give it a competitive advantage. Patents give the firm exclusive rights to produce a certain product, which can effectively eliminate competition. Therefore, all options are correct.

The Source(s) of Monopoly Power for a Monopoly May Be