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Unformatted text preview: Nate neroni Micro HW ch 10 1. I agree with this statement that pure monopoly does not exist because no matter what type of firm you are, or what you sell, you are still going to compete for people to buy ur product. The firm still needs buyers for its products. 2. The major barriers to enter an industry are economies of scale, patent ownership and research, ownership of control of essential resources and pricing and other strategic behavior. Economies of scale can foster a monopoly because it protects the monopolist from competition. aThis is because only a few or a single large firm can achieve low total avg. costs. Patent owner ship can foster a monopoly because since the person who patents their product will have the exclusive rights to that product they will not have any competition. Control of resources can foster a monopoly because of one company controls a significant resource then they can not allow other firms to access that resource. Pricing and other strategic behavior can foster a monopoly because the frm can take actions to lower its price to an...
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