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Sources of Monopoly Power
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Monopoly power is influenced by the following factors:
Barriers to entry
Number of competitors
Advertising
Degree of product differentiation
The larger and more expensive the barriers to entry the greater the monopoly power
The smaller the number of competitors in the market the greater the monopoly power
The greater the advertising spend and more recognisable the brand name the greater the monopoly power
The larger the degree of product differentiation the greater the extent of the monopoly power