six.twelve Locations with high-entry barriers: monopoly as well as the Cournot duopoly design The main point to highlight is the fact that the visibility out of economies away from measure may cause unstable situations for the markets that will be initially very well aggressive. A buddies one really works from inside the reaching a mass enough to deploy a big-size process provides at the straight down average will set you back than its rivals; it’s therefore ready costs a diminished rates, that enables they to expand its market share concise so it gets a good monopolist. You to definitely another hands, if the consult is well enough large according to financially lowest amount of a big-scale process, it is also likely that the market industry have a tendency to fall on specific version of oligopoly. Microeconomic theory inside a static ecosystem In the previous Parts 6.10 and 6.11 , i’ve…