SEARCH
You are in browse mode. You must login to use MEMORY

   Log in to start


From course:

Economics A Level (DONEEEEEEE)

» Start this Course
(Practice similar questions for free)
Question:

How can Monopoly Power come about?

Author: eric_galvao



Answer:

-Barriers to Entry discourages Competition to Firms with Supernormal Profits -Advertising and Product Differentiation: Firms can be a Price Makrer if Consumers Strongly Prefer their Products over other Firms (Brand, Quality..) -Few Competition in Market - If a Few Firms dominate then there will be Monopoly Power between them. NOTE: Consumers can still not buy the Product at all. Demand Curve Logic still stays the Same


0 / 5  (0 ratings)

1 answer(s) in total