Both oligopoly and monopoly market structures tend to form if or when: the product, service or production processes do NOT involve patents or exclusively licensing. there are no production cost advantages when firms produce a large volume, in other words, no econom of scale high barriers to entry into an industry, such as large capital (K) capacity requirements and start-up costs, longstanding reputation or past mergers (consolidation of firms). each firm's product is identical, standardized and no different from other firms' product in the market.

Both oligopoly and monopoly market structures tend to form if or when: the product, service or production processes do NOT involve patents or exclusively licensing. there are no production cost advantages when firms produce a large volume, in other words, no econom of scale high barriers to entry into an industry, such as large capital (K) capacity requirements and start-up costs, longstanding reputation or past mergers (consolidation of firms). each firm's product is identical, standardized and no different from other firms' product in the market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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