Asked by
Theresa Cooper
on Dec 12, 2024
Verified
Which of the following is most likely to contribute to the presence of monopoly in an industry?
A) economies of scale
B) an elastic market demand for the product produced by the industry
C) inefficiency due to bureaucratic decision-making procedures in the industry
D) controlling over 50 percent of the market
Economies of Scale
Economies of scale are cost advantages that entities achieve due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.
Elastic Market Demand
Describes how sensitive the overall market demand for a good or service is to price changes.
Bureaucratic Decision-Making
The process where decisions are made within a hierarchical organizational structure, often involving formal rules and regulations.
- Acknowledge the forces that pave the way for the creation of monopolies and how these entities manage to keep their monopoly status.
- Analyze the effects of scale economies on organizational dimensions and the composition of market architectures.
- Understand how market demand and cost structures influence the presence and power of monopolies.
Verified Answer
BE
Learning Objectives
- Acknowledge the forces that pave the way for the creation of monopolies and how these entities manage to keep their monopoly status.
- Analyze the effects of scale economies on organizational dimensions and the composition of market architectures.
- Understand how market demand and cost structures influence the presence and power of monopolies.