Asked by Christie Stephenie on Jun 23, 2024
Verified
Which of the following is true?
A) Monopolists never lose money in the short-run or long-run.
B) Monopolies can only be overcome by government action.
C) Having a recognizable brand name is a barrier to entry that can preserve monopoly power.
D) Patents are granted to investors who have control over an essential resource.
Recognizable Brand Name
A brand name that is widely known among the public and is easily recalled or recognized due to its reputation or marketing.
Monopoly Power
Refers to the ability of a firm or entity to control the market price and output of a product or service, due to lack of competition.
- Detect impediments to market penetration in monopolies.
- Discuss the significance of patents, trademarks, and control over essential resources in creating and maintaining monopoly power.
Verified Answer
NM
Nijae MooreJun 30, 2024
Final Answer :
C
Explanation :
Having a recognizable brand name can create brand recognition and loyalty among consumers, making it difficult for new firms to enter the market and compete. This can act as a barrier to entry and preserve the monopoly power of established firms. However, choices A, B, and D are not true as monopolists can lose money, monopolies can be overcome by other factors besides government action, and patents are granted for inventions, not for control over resources.
Learning Objectives
- Detect impediments to market penetration in monopolies.
- Discuss the significance of patents, trademarks, and control over essential resources in creating and maintaining monopoly power.