Asked by DYLAN HOLLOWAY on May 11, 2024

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What do economies of scale,the ownership of essential raw materials,and patents have in common?

A) They must all be present before price discrimination can be practiced.
B) They are all barriers to entry.
C) They all help explain why a monopolist's demand and marginal revenue curves coincide.
D) They all help explain why the long-run average cost curve is U-shaped.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Essential Raw Materials

Fundamental inputs necessary for the production of goods, often considered critical for a country's economy and security.

Patents

Legal rights granted by the government to inventors, giving them exclusive rights to their inventions for a certain period of time.

  • Ascertain and describe the significance of hindrances to market entry in monopoly-driven markets.
  • Analyze the impact of economies of scale and ownership of essential resources on market structure.
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JK
Janelle KellyMay 17, 2024
Final Answer :
B
Explanation :
Economies of scale, ownership of essential raw materials, and patents can all serve as barriers to entry for potential competitors, making it easier for a firm to establish a monopoly.