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20 August, 13:30

In chicago's southside (and other places), auto mechanics (who work outside the formal sector, without a business license, advertising, or even a garage) will do work for gang members without charging them. in exchange, gang members chase away other mechanics who wish to operate in the area. these auto mechanics have monopoly power; what type of source does it come from? economies of scale hard to duplicate inputs innovation barriers to entry

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  1. 20 August, 13:31
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    the auto mechanics who are protected by the gangs are taking advantage of the barriers to entry that prevent competition. These barriers are controlled by the gangs and serve as a form of payment to the auto mechanics in the area
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