Monopolists benefit from barriers to entry

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Reference no: EM13898596

Evaluate each statement as true, false, or uncertain, and explain your answer.

a. Monopolists benefit from barriers to entry because it affords them the opportunity to set prices above marginal costs and thereby continually enjoy economic profits.

b. Barriers to entry include economies of scale, ownership of a key resource and inelastic consumer demand.

Reference no: EM13898596

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