Question:
Why can Economies of Scale lead to Monopoly Power?
Author: eric_galvaoAnswer:
-When the Firm's AC falls, it can set a Lower Price. This undercuts their Opponents -The Firm thus gets a Bigger market Share as it Offers Products at Prices lower than their Competitors -Eventually, the Firm can Force all other Rivals out and become the only Supplier of the Product. Monopoly
0 / 5 Â (0 ratings)
1 answer(s) in total