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From course:

Economics A Level

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Question:

How can Monopoly Power come about?

Author: go kys



Answer:

-Barriers to Entry discourages Competition to Firms with Supernormal Profits -Advertising and Product Differentiation: Firms can be a Price Makrer if Consumers Strongly Prefer their Products over other Firms (Brand, Quality..) -Few Competition in Market - If a Few Firms dominate then there will be Monopoly Power between them. NOTE: Consumers can still not buy the Product at all. Demand Curve Logic still stays the Same


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go kys
go kys