a monopoly exists because of....???

Question

a) barriers to entry
b) the large number of buyers and sellers
c) the absence of barriers to entry
d) collusion among the dominant firms
e) the absence of exclusive government franchises

PLEASE HELP!

Answer 1

Out of those answers, it would be answer A. By definition a monopoly is a service/situation only one entity provides. If there are barriers than nobody new can compete if the situation has one dominant player. Answer B implies competition between many sellers. Answer C implies people can get in the business and compete, though the situation cannot be ascertained. Answer D is an oligarchy/cartel situation. Answer E implies competition/free market.

However, if it wasn't multiple choice, I'd say none of them are the answer because monopolies don't exist BECAUSE of any of those situations. Monopolies can only be perpetuated by the market condition of answer A.

Answer 2

When Does A Monopoly Exist

Answer 3

its not c.. an absense of barriers to entry woudl mean that its relatively easy to have a compnay join up.. normally, a monopoly would occur when a place has the advantage to teh point that no other company can compete.. so i would have to say d
one way to tell is look up the definition of collusion...(secret cooperation: secret cooperation between people in order to do something illegal or underhanded) - basically to draw out competition..

**EDIT** in response to kate's answer.. the companies do not have to be the same market.. one could be a manfufacturer of good for a particular brand provider.. they can work deals out saying.. if you dont sell to otehr companies. our company a will guarentee a rate much higher then any other company will be able to afford .. jsut so that we can controlthe market.... it does not specify that the firms are in fact in the same product market.. one can provide the other..

but A is infact another answer that could pose to be correct..

normally i would put A in this situation actually.. since the practice of D is in fact illegal.. and normally isnt practiced..

Answer 4

a) contributes to a monopoly
b) is the opposite of a monopoly
c) contributes to the opposite of monopoly
d) functions as a monopoly , but in literal terms is not because the word firms is a plural and monopoly means 1 business only contoling that market
e) contributes to opposite of monopoly .

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Answer 5

f) the absence of competitor's to compete. So the monopoly
holder has control of the demand.

Answer 6

a

Answer 7

c