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... form other firms. We may consider that there is no interdependence in this market, there in one firm only. Finally it is worth mentioning that the firm may change its demand curve by for example, advertising. (Introductory Economics, a first approach to the study of economics by Mike Cunningham 1994) Why do monopolies exist? There are several reasons. The source of Polaroid's monopoly power is its penitent on instant camera technology. No firm can copy Polaroid's process of making instant pictures. Penitent laws are one kind of barriers to entry that prevent other firms form entering the industry. Barriers to entry A barrier to entry is a condition that precludes firms from entering and industry to compete for profits. Barriers exist when new firms find it difficult to enter the market. If such barriers exist the elasticity of supply will be less that if no such barriers existed. Barriers that prevent ...