A fundamental source of monopoly market power arises from:

Question

Quizplus · Accepted Answer

Barriers to entry can include economies of scale, high startup costs, exclusive licenses, government regulations, and patents. These barriers prevent or limit new firms from entering the market, thereby allowing the existing monopoly firm to enjoy market power and charge higher prices. Perfectly elastic demand and perfectly inelastic demand both represent extreme market conditions that are unlikely to exist in real-world scenarios, and "free" natural resources are not necessarily monopolized or subject to market power.

A Fundamental Source of Monopoly Market Power Arises From