limited government licenses that create a monopoly do so because part 2 a. the license grants a marginal cost advantage. b. the

Question

nata0808 [166]

1 year ago

9

limited government licenses that create a monopoly do so because part 2 a. the license grants a marginal cost advantage. b. the

firm will become a natural monopoly. c. the license is an entry barrier. d. all of the above.

Business

1 answer:

sammy [17] · Answer 1 · 2024-04-24T22:41:27+03:00

Limited government licenses that create a monopoly do so because the license is an entry barrier.

Hence, option C is correct.

What do you mean by monopoly in economics?

Monopoly can be defined as a situation where there is a dominance of a single seller in the market. It is opposite to the concept of perfect competition. An unregulated monopoly possesses market power and can influence prices in the overall sector.

The main features revolves around

Only One Seller and Various Buyers.
No Produce Replacement Option
Very Difficult to Enter in Market.
Pricing Control.
Government Driven.
Natural Monopoly.

There are usually three types of monopoly

Natural Monopolies.
State Monopolies.
Un-natural Monopolies.

To know more about monopoly from the given link

brainly.com/question/28841635

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