state and explain circumstances under which a firm may acquire monopolistic power in the market.
1. If the firm has the sole right to a production techniques which denies other firms from the use of this technique.
2. If the firm has control over the strategic inputs. This makes the firm to have a sole access to production inputs of a commodity.
3. If the firm ejoys economies of scale. Economies of scale allows the firm produce at a lower cost than the other inputs.
A firm may acquire monopolistic power if the firm has unique production techniques, strategic control and economies of scale.