Which of the following is true of a monopoly?
A)Producers sell a product for which there are many substitutes.
B)Producers enjoy complete freedom of entry into and out of the industry.
C)The demand curve facing the producer is the market demand curve.
D)Producers always charge the highest possible price.
E)Producers are price-takers.

Question

Quizplus · Accepted Answer

A monopoly exists when a single producer controls the entire supply of a particular product or service. As a result, the demand curve facing the producer is the entire market demand curve, and they can exert a significant amount of control over price.

Which of the Following Is True of a Monopoly