H ng.cengage.com Eb Content B https://|earn7ca7centrai7... 7 The Internet intranets... 8 7 E7commerce 7 E7com... E module 8 hw.docx : BNA... E Cengage Learning E MindTap 7 Cengage Lea i: CENGAGE MINDTAP Q Search this course 0 : minoo v Aplia Homework: Chapter 15 o X Attempts I I Average/ 1 1. Sources of monopoly power A monopolist, unlike a competitive rm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entrythat 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 exisls in each scenario. Barriers to Entry Exclusive Ownership Government- of a Key Created Economies Scenario Resource Monopolies of Scale The Northern Aluminum Company formerly controlled all Canadian sources of bauxite, a key component in the production of aluminum. Given that the Northern Aluminum Company did not sell bauxite to any other companies, the Northern Aluminum Company was a monopolist in the Canadian aluminum industry from the late nineteenth century until the 19505. In an imaginary country, there is only one federally licensed lottery agency In any state; that Is, It is impossible for any private rm to start up a competitive lottery without a government licence to do so. In the public water industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary pipes makes it risky and, most likely, unprotable for competitors to enter the market. Grade It Now Save 8: Continue Continue without saving