Which of the following does not contribute to the existence of monopoly power?
A) A continuously decreasing long-run average cost curve
B) The possession of a patent
C) The control of essential inputs in the production process
D) A pure cost or quality advantage
E) A relatively inelastic market demand curve

Question

Quizplus · Accepted Answer

A relatively inelastic market demand curve does not contribute to the existence of monopoly power. Monopoly power is primarily derived from barriers to entry such as patents, control of essential inputs, and cost or quality advantages, not from the elasticity of demand.

Which of the Following Does Not Contribute to the Existence