A Monopoly May Exist Because

question 5

Multiple Choice

A monopoly may exist because

• A)government has refused to grant a public franchise.
• B)one firm has the exclusive ownership of a necessary resource.
• C)the firm is so large and is currently experiencing such vast diseconomies of scale that it can out-compete all newcomers.
• D)of diseconomies of scale.

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Definitions:

Potential Market

The entire market universe that could potentially buy a product or service, considering all possible customers who fall within a segment.

Prototype

An early sample, model, or release of a product built to test a concept or process, serving as a thing to be replicated or learned from.