Which of these would NOT be a factor that would permit the existence of monopoly power?
A)High levels of sunk costs
B)Control of a scarce resource
C)Diseconomies of scale in the production of the product
D)All of these responses are correct

Question

Quizplus · Accepted Answer

Diseconomies of scale would actually make it more difficult for a single firm to maintain monopoly power as their costs would increase as they produce more, making it easier for competitors to enter the market. A and B are both factors that could allow for the existence of monopoly power.

Which of These Would NOT Be a Factor That Would