Often, If a Monopoly Exists, Other Firms Try to Figure

question 20

Essay

Often, if a monopoly exists, other firms try to figure out how to break it up - to get a share of the monopolist's profit. Describe two things firms do to try to enter a monopolized industry. Give an example of each.

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Definitions:

Inventory Cost Flow

The process by which costs associated with inventory are accounted for, impacting how cost of goods sold and ending inventory are calculated.

Gross Profit

The difference between total revenue and the cost of goods sold, indicating the fundamental profitability of a company's core activities.

Rising Prices

A situation in which the general level of prices for goods and services in an economy increases over a period of time.

Market Cost

The current price at which goods, assets, or services can be bought or sold in the marketplace.