Highlight five factors, which may favor existence of a monopoly.

      

Highlight five factors, which may favor existence of a monopoly.

  

Answers


joseph
i. Control of an important factor of production. Where affirm has total control over a major factor of production like mineral deposits it may exercise monopoly power.
ii. Ownership of production rights, where only one organization has ownership of a commodity, e.g. patent rights or the government has licensed that only one firm can to produce a certain commodity.
iii. Size of the market, some markets are small in the more that one they can experience losses all of them.
iv. Group of firms combining t act as one, firms work together to achieve their goals like the cartels hence exercise monopoly power.
v. Additional cost to other firms, monopoly can be enjoyed if extra cost can be met by very few firms or only one.
vi. Financial factor, where the initial cost is too high for other companies to pay in order to come into business.

joseph rimiru answered the question on December 20, 2017 at 18:24


Next:  Explain four benefits Kenya would derive from a well drawn development plan.
Previous: Name two crop production practices carried after planting to achieve optimum plant population

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions