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Question A21 Market dominance in computer chip manufacturing will mean higher prices One of the most hard fought anti-monopoly cases of 2019, The Federal Trade Commission (FTC) v. Qualcomm, is taking place in California, USA. It's been two years since the FTC Investigated Qualcomm alleging that the computer chip manufacturer is engaged in illegal activity that allows it to overcharge for its patents. In 2016, South Korea's monopoly regulator fined Qualcomm $854 million for breaking competition laws, the largest fine ever given in South Korea. Taiwan's Fair Trade Commission also fined Qualcomm with $778 million. There are concerns that if a major competitor, Intel, were eliminated from the computer chip market Qualcomm would likely regain its monopoly over the market. As a result, Qualcomm would be able to impose monopoly pricing on the market, leading to increased costs for consumers. Not only would consumers pay more for their smartphones and computers, but the ban would reduce consumer choice and likely preserve Qualcomm's monopoly over the long term. a) Define the term 'monopoly and give an example of how a monopoly firm may come to exist. (2) ) b) with the aid of a diagram, explain the long run equilibrium position of a monopolist such as Qualcomm. And explain briefly how it may achieve abnormal profit. (6) c) Analyse ONE reason why monopoly power may be damaging for consumer welfare. And if appropriate, provide a diagram or an example that shows this. (6) d) Analyse TWO barriers to entry that a firm may face when trying to enter the market for computer chips. (6)