Why Monopolies Arise Barriers to entry have three sources o Ownership of a key resource o The government gives a single firm the exclusive right to produce some good Costs of production make a single producer more efficient than a large number of producers. H arc Inc items and derived items copyright o 2001 by Harcourt, IncHarcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Why Monopolies Arise Barriers to entry have three sources: u Ownership of a key resource. u The government gives a single firm the exclusive right to produce some good. u Costs of production make a single producer more efficient than a large number of producers