Which of the following is NOT a source of monopoly power?
A) government regulations prohibiting entry of new firms
B) decreasing marginal costs
C) innovation
D) economies of scale

Question

Quizplus · Accepted Answer

Decreasing marginal costs are not a source of monopoly power. In fact, decreasing marginal costs often lead to competition as firms can lower their prices and still make a profit. The other options (A, C, and D) are all potential sources of monopoly power, as they can prevent or limit the entry of new competitors and make it difficult for existing firms to compete.

Which of the Following Is NOT a Source of Monopoly