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Economies of scale, a major drawback. This occurred at a unit cost and the highest unit prices low for consumers based on the existence of a small number of large companies, or in the case of a monopoly to one company because the company is very large. The large market share of the most powerful in the new company was not able to start up the industry with economies of scale. Utilities called natural monopolies because they have economies of scale in severe cases more than one company is inefficient because the maze of pipes or wires that would result if there is competition between companies, or companies, cable barriers. The law is still in the form of patents and licenses, such as radio and television stations. Ownership or control of resources is an important barrier to entry, such as professional sports league to control the player and stadium lease in the big city. It has to be noted that the barrier is complete rarely think about the phone company a decade ago; There is no phone instead Nowadays, mobile phones are very popular. It will make your home phone instead of making traditional phone companies will lose their monopoly position
for the consumer price per unit depends on the existence of big business. A small number of Or a parent company in the case of complete monopoly. Due to the large The market share of large and powerful. Make a big business that would not be able to start up in business with economies of scale, since it takes time. And high costs
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