A Monopoly May Arise Due to

question 34

Multiple Choice

A monopoly may arise due to

• A) a patent.
• B) net work externalities.
• C) large economies of scale.
• D) all of the above.

---

Definitions:

Perfectly Competitive Industry

A market structure characterized by many sellers offering identical products, where no single seller can influence the market price.

Marginal Cost

The additional expense incurred from producing one more unit of a good or service.

Standardized

Made uniform in form or character, often to enable comparability across different contexts or systems.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product, leading to no single consumer or producer having market power.