Most markets are not monopolies in the real world because
A) firms usually face downward-sloping demand curves.
B) supply curves slope upward.
C) price is usually set equal to marginal cost by firms.
D) there are reasonable substitutes for most goods.

Question

Quizplus · Accepted Answer

Most markets are not monopolies in the real world because there are reasonable substitutes for most goods. In a competitive market, if a firm tries to charge a higher price, consumers can switch to substitutes offered by other firms, which limits the market power of any single firm. This makes it difficult for a firm to maintain monopoly power in the long run.

Most Markets Are Not Monopolies in the Real World Because