Dionne Searcey, Amy Schatz, Almar LaTour and Dennis K Berman, “A Reborn AT&T to Buy BellSouth,” The Wall Street Journal Online, March 6, 2006, A1 Sara Silver, Dennis K Berman, and Leila cs Abroud, “In Lucent Deal, Two Rivals Face Inroads from China,” The Wall Street Journal Online, March 25, 2006, A1;Sara Silver, Dennis K Berman, and Leila cs Abroud, “In Lucent Deal, Two Rivals Face China,” The Wall Street Journal Online, March 25, 2006, A1 ANSWERS TO TRY IT! PROBLEMS monopoly perfect competition monopoly monopoly monopoly 10.4 Review and Practice Summary This chapter has examined the profit-maximizing behavior of monopoly firms Monopoly occurs if an industry consists of a single firm and entry into that industry is blocked Potential sources of monopoly power include the existence of economies of scale over the range of market demand, locational advantages, high sunk costs associated with entry, restricted ownership of raw materials and inputs, and government restrictions such as licenses or patents Network effects for certain products further increase the market power that patents afford Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 561