Which of the following is not a possible cause of monopoly?
A)warranties
B)patents
C)falling average costs
D)government franchise grants

Question

Quizplus · Accepted Answer

Warranties are not a possible cause of monopoly as they do not affect market competition or the ability of other firms to enter the market. Patents provide exclusive rights over a new product or process for a limited time period, which can lead to monopoly power. Falling average costs can provide economies of scale that allow a firm to increase its market share and potentially become a monopoly. Government franchise grants provide exclusive rights to provide a certain good or service in a specific area, which can also lead to monopoly power.

Which of the Following Is Not a Possible Cause of Monopoly