Monopolies are able to develop and maintain themselves O cap

Monopolies are able to develop and maintain themselves O capital costs are large relative to average total costs O When firms have U-shaped, average-total-cost curves 0 when economies of scale are large relative to the whole market\'s demand 0 when demand is very elastic

Solution

The correct choice is :- Capital costs are large relative to average total costs

Explanation :- Monopolists are able to maintain themselves because monopoly is characterised by one seller with very high barrier to entry such as high capital costs required to enter the market.