Question

1. which of the factor doesnot contribute to the monopoly creation? Patent - Economic of scale...

1. which of the factor doesnot contribute to the monopoly creation? Patent - Economic of scale - aggresive advertisement campaign by the firm -Network externalities.

2. Price received by afirm in perfect competation is decided by :

Firm it self - Demand & supply conditions in the market - largest firm in the market - Few big firms in the market.

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Answer #1

1)

Patent, economies of scale and network externalities are factors that promote monopoly in market. Patent provides exclusive rights of firm over the production of patented items. Further, economies of scale reduces cost of production and poses barrier to new entrant. Similarly, network externalities also poses barrier to new entrant.

Right Answer is Aggressive advertisement campaign by the firm.

2)

Right answer is Demand and supply conditions in the market .

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