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66
Economic theory suggests that monopoly will increase price and decrease quantity. However, from 1864 to 1914, real prices were falling and output was increasing in manufactured goods, transportation, and financial services. Why is that?
Explain:
6) Technological change meant opening of barriers to entry
Explain:
6) Technological change meant opening of barriers to entry
Tech advancement reduces the marginal cost of production for existing and new firms, so competition ensues because of greater ease of entry.
Karteninfo:
Autor: savhighsmith
Oberthema: Economics
Thema: History of Economics
Schule / Uni: UGA
Ort: Athens
Veröffentlicht: 12.10.2010