Which statement concerning monopoly is TRUE?
A)Monopoly firms are always larger than are perfectly competitive firms.
B)A monopoly has no rivals.
C)Barriers to entry do not prevent other firms from entering a monopolized industry.
D)Monopolists produce more output than does a competitive market with the same demand and cost structure.

Question

Quizplus · Accepted Answer

A monopoly has no rivals because it is the sole producer of the product or service, and there are no close substitutes available in the market. Other firms may try to enter the monopolized industry, but they will face significant barriers to entry that prevent them from effectively competing with the monopolist. Option A is false because the size of a firm depends on various factors, such as market demand, production costs, and economies of scale. Option C is incorrect because barriers to entry make it difficult or impossible for new firms to enter a monopolized industry. Finally, option D is incorrect because monopolists tend to produce less output than perfectly competitive markets to maximize their profits.

Which Statement Concerning Monopoly Is TRUE