Using a broad definition, a firm would have a monopoly if
A)it produced a product that has no close substitutes.
B)it does not have to collude with any other producer to earn an economic profit.
C)there is no other firm selling a substitute for its product close enough that its economic profits are competed away in the long run.
D)it can make decisions regarding price and output without violating antitrust laws.

Question

Quizplus · Accepted Answer

A monopoly exists when a firm is the sole producer of a product that has no close substitutes.

Using a Broad Definition, a Firm Would Have a Monopoly