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: Structural, legal, or economic obstacles prevent new competitors from entering the market.
: The firm can influence the market price by adjusting its output levels. Monopoly
: There are no close substitutes available for consumers, leaving them with little choice. : Structural, legal, or economic obstacles prevent new
: To sell more units, the monopolist must lower its price. Sources of Monopoly Power (Barriers to Entry) Monopoly
Monopolies typically form when "barriers to entry" protect a firm from competition: