1. Sources of monopoly power Monopolists, unlike competitive firms, have some market power. A monopolist can increase price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry- that is, other companies cannot enter the market to create competition in that particular industry. Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario. Barriers to Entry Government- Exclusive Created Economies Ownership of a Scenario Monopolies of Scale Key Resource In the natural gas industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the O O O necessary pipes and hoses makes it risky and, most likely, unprofitable for competitors to enter the market. The Aluminum Company of America (Alcoa) formerly controlled all U.S. sources of bauxite, a key component in the production of aluminum. Given that Alcoa did not O O O sell bauxite to any other companies, Alcoa was a monopolist in the U.S. aluminum industry from the late 19th century until the 1940s. At the state level, the Pennsylvania Liquor Control Board licenses only a certain O O O number of dining establishments to serve alcohol within a geographic area