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

Question

Quizplus · Accepted Answer

To maintain a monopoly, the firm must have an insurmountable barrier to entry. This means that potential competitors are unable to enter the market and compete with the monopolist, allowing the monopolist to maintain their dominant position. In the absence of such a barrier, other firms may be able to enter the market and compete, eroding the monopolist's monopoly power.

What Must a Firm Have to Maintain a Monopoly