Which one of the following is the best description of a monopolist?
A) a firm that produces a single product
B) a firm that is the sole producer of a narrowly defined product class, such as yellow, grade-A butter produced in Wisconsin
C) a firm that is the sole producer of a product for which there are no good substitutes in a market with high barriers to entry
D) a firm that is large relative to its competitors

Question

Quizplus · Accepted Answer

A monopolist is best described as a firm that is the sole producer of a product for which there are no good substitutes, and it operates in a market with high barriers to entry, preventing other firms from entering the market.

Which One of the Following Is the Best Description of a Monopolist