Key Terms
Cost barriers: In some markets the cost of setting up a firm to compete with existing operators is too high.
Legal barriers: In some markets it's possible to exclude competition legally one of these ways is to obtain a patent. A patent is a license that prevents other firms fro copying ones design.
Economies of scale: An established firm might dominate a market because it has grown and can exploit economies of scale. As a result average costs will be lower.
Research and development: Since monopolies are large and therefore often make large profits they are able to invest in more research and development.
Legal barriers: In some markets it's possible to exclude competition legally one of these ways is to obtain a patent. A patent is a license that prevents other firms fro copying ones design.
Economies of scale: An established firm might dominate a market because it has grown and can exploit economies of scale. As a result average costs will be lower.
Research and development: Since monopolies are large and therefore often make large profits they are able to invest in more research and development.