Which of the Following Contributes to the Existence of Monopoly

question 51

Multiple Choice

Which of the following contributes to the existence of monopoly power?

• A) patents
• B) constant returns to scale
• C) the shortage of critical resources
• D) the law of diminishing returns

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Definitions:

Warranty Action

Legal action taken to enforce the terms of a warranty, which is a guarantee provided by a seller to a buyer regarding the condition of a product.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to unintended harm or damage.

Proximately Caused

Refers to an event sufficiently related to a legally recognizable injury to be held as the cause of that injury.

Horizontal Privity

A legal term referring to the relationship between parties with coordinating interests in a property, often in lease agreements.