A monopoly may arise or be created by all of the following except A. Diseconomie

Question

A monopoly may arise or be created by all of the following except A. Diseconomies of scale B. Ownership of an essential resource C. Government restrictions on entry D. Patents E. Economies of scale A monopoly may arise or be created by all of the following except A. Diseconomies of scale B. Ownership of an essential resource C. Government restrictions on entry D. Patents E. Economies of scale A. Diseconomies of scale B. Ownership of an essential resource C. Government restrictions on entry D. Patents E. Economies of scale

Explanation / Answer

Option A

All other options are helpful in reducing cost and restricting entry but diseconomies of scale results when production is done at a higher cost. This becomes a cause of shutting down operations for a firm.

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