Watch the video clip from the movie Forrest Gump: Forrest Gump, shrimp boat M.com : Consider...

Transcribed Image Text:

Watch the video clip from the movie Forrest Gump: Forrest Gump, shrimp boat M.com : Consider that Forrest's good luck of "being in the right place at the right time" allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest's boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats. There are two parts that you should include in your initial post. 1) Consider and list the barriers to entry facing potential competitors in Forrest's monopoly market. 2) The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly. What barriers to entry exist in other industries that allow certain firms to operate as a monopoly? Are these barriers contestable? Watch the video clip from the movie Forrest Gump: Forrest Gump, shrimp boat M.com : Consider that Forrest's good luck of "being in the right place at the right time" allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest's boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats. There are two parts that you should include in your initial post. 1) Consider and list the barriers to entry facing potential competitors in Forrest's monopoly market. 2) The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly. What barriers to entry exist in other industries that allow certain firms to operate as a monopoly? Are these barriers contestable?

Answer rating: 100% (QA)

1 Consider and list the barriers to entry facing potential competitors in Forrests monopoly market Forrest through good fortune and smart usage of an opportunity had carved out a monopoly in the Shrim... View the full answer