Consider the market for radio stations. At the nationallevel, the Federal Communications Commission (FFC) only licenses acertain number of radio and television stations in each geographicarea.
A monopolist, unlike a perfectly competitive firm, has some marketpower. It can raise its price, within limits, without the quantitydemanded falling to zero. The main way it retains its market poweris through barriers to entry. That is, other companies cannot enterthe market to create competition in that particular industry. Whichof the following best explains the barriers to entry that exist inthe above scenerio?
A. Exclusive Ownership of a key resource
B. Government-created monopolies
C. Economies of Scale
