Illustrate the sources of monopoly, Managerial Economics

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Q. Illustrate the sources of monopoly?

Merger for Large-scale Production: Thirdly monopoly undertaking can be a consequence of the necessity to produce on a large scale to decrease costs. Existing small firms may merge into a big firm or may not survive in long period. It's only when there is single firm in such a situation which costs are greatly decreased because of the economies of large-scale production.

Rival Firms Eliminated: Fourthly, unfair means and pressure tactics by a giant firm may result in elimination of rival firms from industry to secure sole position of a giant firm.


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