1. Sources of monopoly power A monopolist, unlike a competitive firm, has some m
ID: 1092065 • Letter: 1
Question
1. Sources of monopoly power
A monopolist, unlike a competitive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry
The Aluminum Company of America (Alcoa) formerly controlled all U.S. sources of bauxite, a key component in the product of aluminum. Give that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late-nineteenth century until the 1940s.Explanation / Answer
First option - Exclusive ownership of a key resource
Second option - Economies of Scale
Third option- Government created Monopolies.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.