Monopoly - the meaning of monopoly - Why Do monopolies Exist?

5 important questions on Monopoly - the meaning of monopoly - Why Do monopolies Exist?

What type of barrier to entry  do monopolists use to control a resource or input crucial to and industry that can prevent other firms from entering?

Control of scarce resources or inputs

What is the barrier to entry when a monopolist maintains a consistent technological advantage over potential competitor

Technological superiority

What could be the reason why technological superiority is not a guarantee of success against competitors

Because there may be network externalities
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What is the barrier to entry whereby the value of a good to an individual is greater when many others use the same good

Network externality

What gets the most advantage  from network externality? Why?

The companies with the deepest pockets
because they can sell at a loss  with the expectation that they will have a large customer base

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo