Assertion: monopoly's cost | /r/HasProperty | high
Facets:
value: very
type: DEGREE
value: compared to just one firm
type: OTHER
value: prohibitively
type: DEGREE
value: usually
type: DEGREE
Source sentences:
text: In these type of monopolies, other firms cannot enter the market because either the startup costs are too high, or the cost structure of the market gives an advantage to the largest firm.
text: The costs of say a pharmaceutical company to produce a new FDA approved drug are usually extremely high.
text: The fixed cost of constructing a competing transmission network is so high, and the marginal cost of transmission for the incumbent so low, that it effectively bars potential competitors from the monopolist's market, acting as a nearly insurmountable barrier to entry into the market place.
text: If the fixed costs are very high, it will result in it not being effective for more than one company on the market.
text: Since the (fixed) cost of network construction is too high, the expected return is not worth the investment.
text: To have two different companies offering water wouldn’t make sense as the average cost would be very high compared to just one firm and one network.
text: Moreover, the costs of transporting cement over land are high, and so a cement plant in an area without access to water transportation may be a natural monopoly.
text: A bilateral monopoly model is often used in situations where the switching costs of both sides are prohibitively high.
text: The fixed cost of constructing a competing transmission network is so high, and the marginal cost of transmission for the incumbent so low, that it effectively bars potential competitors from the monopolist's market, acting as a nearly insurmountable barrier to entry into the market place.