Module 6 Discussion/ Microeconomic

After watching the video clip from Forrest Gump consider that Forrests 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 Forrests boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats. Consider the barriers to entry facing potential competitors in Forrests monopoly market. 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?

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