Sources of Market Power
The main sources of monopoly power are ___________.
control of a key resource
economies of scale
diseconomies of scale
In many sectors like national railway or electricity distribution, natural monopolies are beneficial because _________.
greater supply would push prices up
limited supply would push prices down
the economies of scale helps drive the cost down.
network externalities would help drive the costs down.
Which of the following is a form of legal market power?
Economies of scale
Control of a key resource
Which of the following are examples of legal market power?
When market power is obtained through barriers to entry created by a firm itself, the market power is called
When market power is obtained through barriers to entry created by the government or a regulatory body, the market power is called
- patented monopoly
- natural monopoly
- resource monopoly
- special status
- natural market power
- price market power
- social market power
- legal market power