What might cause monopoly

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Reference no: EM131091211

Many firms might like to be monopolies because such firms earn economic profits in the long run. What might cause a monopoly? A firm is likely to be a monopoly if

a. it experiences diseconomies of scale.

b. there are important network externalities in supplying the good or service.

c. its suppliers have no bargaining power.

d. the market is not regulated by the government.

e. its product has complementary goods or services that are in high demand.

Reference no: EM131091211

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