What are the different types of entry barriers that will cause monopoly power? Give an example of each.

Answer: There are several types of entry barriers, including exclusive rights (such as patents, copyrights and licenses), control of basic resources and economies of scale. Exclusive right refers to the right given by law to produce or distribute goods and services. The control of important raw materials such as aluminum or oil can prevent other enterprises producing aluminum or gasoline from producing the same products. Positive economies of scale lead to "natural monopoly" because the largest producers charge lower prices by excluding market competition. For example, there is evidence that converting bauxite into alumina has economies of scale.