According to the text, the most important of the four factors which give rise to monopoly is
A)Exclusive control over important inputs
B)Economies of scale
C)Patents
D)Government licenses

Question

Quizplus · Accepted Answer

The text states that economies of scale are the most important factor that gives rise to monopoly. This means that as a company grows and produces more, it can lower its average cost per unit, making it difficult for smaller competitors to compete. Exclusive control over important inputs, patents, and government licenses can also give rise to monopoly, but the text specifically highlights economies of scale as the most significant factor.

According to the Text, the Most Important of the Four