Which of the following does not contribute to the existence of monopoly power?
A)A continuously decreasing long-run average cost curve
B)The possession of a patent
C)The control of essential inputs in the production process
D)A pure cost or quality advantage
E)A perfectly elastic market demand curve

Question

Quizplus · Accepted Answer

A perfectly elastic market demand curve indicates that firms have no power to raise prices due to perfect competition, therefore, it cannot contribute to the existence of monopoly power.

Which of the Following Does Not Contribute to the Existence