This flashcard is just one of a free flashcard set. See all flashcards!
63
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:
3) Few firms managed to maintain monopoly power
Explain:
3) Few firms managed to maintain monopoly power
short-run monopoly power usually didn't last because of competing firms entering the market from a low cost of entry
Flashcard info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 12.10.2010