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Vanyuwa [196]
4 years ago
8

A local electricity - generating company has a monopoly that is protected by an entry barrier that takes the form of:________. a

. economies of scale. b. perfectly inelastic demand curve. c. control of a key raw material. d. network externalities.
Business
1 answer:
PIT_PIT [208]4 years ago
8 0

Answer:

a. economies of scale.

Explanation:

Economics of scale refers to a scale in which there is a benefit of the cost that occurs when there is an efficient production

It can be accomplished by rising the production at less cost this arise as cost are allocated among the larger number of goods

Here, the local electricity who generated the company has a monopoly and are safe from the entry barrier

So this is a case of economies of scale

Hence, the correct option is a. economies of scale

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kondaur [170]

Answer: Creates monopoly power

Explanation: A patent can be defined as an intangible asset the gives its holder the right that no other person in the world can use, sell or produce the unique good or service that has been patented by its inventor.

Thus, the right to produce or use a specific invention by a single person can lead to monopoly in that particular industry.

Hence from the above we can conclude that the right answer is option D.

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Luba_88 [7]

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