Which of the following contributes to a firm maintaining a monopoly?
A)Exclusive franchises.
B)The existence of substitute goods.
C)A large number of firms in the industry.
D)Homogeneous products in the market.

Question

Quizplus · Accepted Answer

Exclusive franchises can limit competition and help a firm maintain a monopoly by preventing other firms from entering the market or gaining access to key resources or distribution channels. The existence of substitute goods, a large number of firms in the industry, and homogeneous products, on the other hand, all increase competition and make it more difficult for any one firm to maintain a monopoly.

Which of the Following Contributes to a Firm Maintaining a Monopoly