Because of the lack of substitutes,the market for a newly developed and freshly patented prescription drug is BEST considered to be:
A)in perfect competition.
B)in monopolistic competition.
C)an oligopoly.
D)a monopoly.

Question

Quizplus · Accepted Answer

A newly developed and freshly patented prescription drug has no close substitutes, which gives the patent holder a monopoly in the market for a limited time period. Therefore, the correct answer is D) a monopoly.

Because of the Lack of Substitutes,the Market for a Newly