Have some form of monopoly in their markets
Can:
- Reduce choice
- Increase prices
- Be inefficient w/o competition
- Create barriers to entry to stop new firms from entering market
H/e can also:
+ Invest heavily in new technology
+ Gain economies of scale (+ production, - costs)
Firms can become dominant by internal growth (opening new stores) or external growth (takeovers/mergers)
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