A monopoly exists when
A)A small number of firms are the only producers of a good.
B)A large number of firms are producing a good.
C)The government intervenes on behalf of consumers.
D)One firm produces all the output for a particular good or service.

Question

Quizplus · Accepted Answer

A monopoly exists when one firm has exclusive control over the production and sale of a particular good or service, resulting in no competition in the market. This can lead to the firm having the ability to set high prices and restrict output without fear of losing market share to competitors.

A Monopoly Exists When