A market tends to be monopolistic if
A)The good has too many substitutes
B)The good has very few substitutes
C)The good has too many complements
D)The good has very few complements

Question

Quizplus · Accepted Answer

A market tends to be monopolistic if the good has very few substitutes. In a monopolistic market, there are few close substitutes for a particular product, giving the monopolistic producer control over the price of the product. This is because consumers may have no other options and must purchase the product regardless of its price.

A Market Tends to Be Monopolistic If