Which of the following is not a source of monopoly?
A) technologies that allow each of many small firms to produce at the same per-unit costs as one large firm
B) patents
C) control of crucial inputs
D) government licensing requirements

Question

Quizplus · Accepted Answer

Technologies that allow each of many small firms to produce at the same per-unit costs as one large firm lead to a competitive market and not a monopoly. Monopoly refers to a market structure in which there is a single seller, selling a unique product with no close substitutes, exhibiting significant barriers to entry for new firms, and controlling the market price of the product. Patents, control of crucial inputs, and government licensing requirements can create barriers to entry for new firms, leading to monopoly power in the hands of existing firms.

Which of the Following Is Not a Source of Monopoly