The most effective barrier/s to protect a monopoly from competition is/are:
A) legal barriers or government ownership.
B) excessive advertising by the monopoly.
C) higher wages paid to the monopoly's workers.
D) the high quality product offered by a monopoly.

Question

Quizplus · Accepted Answer

Legal barriers or government ownership provide the most effective protection for a monopoly from competition because they restrict or eliminate the entry of new competitors into the market. This can be achieved through various means such as patent laws, licensing requirements, and government subsidies, among others. Excessive advertising or higher wages may help a monopoly maintain its market share, but they do not prevent new competitors from entering the market with lower prices or better products. A high quality product alone does not guarantee a monopoly's survival, as consumers may still choose to buy from competitors if they offer lower prices or greater variety.

The Most Effective Barrier/s to Protect a Monopoly from Competition