The source(s)of monopoly power for a monopoly may be:
A) economies of scale.
B) economies of scope.
C) patents.
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct in identifying the potential sources of monopoly power. Monopolies may arise due to economies of scale, which allow larger firms to produce goods at lower costs than smaller firms. Economies of scope refer to the ability of a monopoly to produce multiple goods or services using the same set of resources, which can give them an advantage over smaller firms that can only produce a limited range of products. Patents can also provide a monopoly with exclusive rights to produce and sell a particular product or technology for a period of time, further enhancing their market power.

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