Which of the following may characterize a monopoly?
A)Substantial market power.
B)Low barriers to entry.
C)Many firms.
D)Differentiated product.

Question

Quizplus · Accepted Answer

A monopoly is characterized by substantial market power, which means that the firm has the ability to control prices and restrict output without facing significant competition. The other options are not characteristic of a monopoly; low barriers to entry and many firms are more typical of a competitive market, while differentiated products can also be found in markets with multiple firms.

Which of the Following May Characterize a Monopoly