An industry with a single firm producing a product for which there are no close substitutes and that is protected by barriers to entry is an example of:
A)perfect competition.
B)monopolistic competition.
C)oligopoly.
D)monopoly.

Question

Quizplus · Accepted Answer

A single firm producing a product for which there are no close substitutes and with barriers to entry is the definition of a monopoly. This firm has significant control over the market and can dictate prices and output levels. This is in contrast to perfect competition, which has many firms producing homogeneous products, and monopolistic competition, which has many firms producing differentiated products. Oligopoly is a market structure in which a few large firms dominate the market.

An Industry with a Single Firm Producing a Product for Which