A major characteristic of monopoly is
A) multiple sellers of a product.
B) two sellers of a product.
C) a few sellers of differentiated products.
D) a few sellers of an identical product.
E) a single seller of a product.

Question

Quizplus · Accepted Answer

A major characteristic of monopoly is a single seller of a product. Monopoly occurs when there is only one seller of a good or service with no close substitutes. This gives the monopolist significant control over the price and output of the product, allowing them to potentially earn higher profits than in a competitive market. In contrast, in a market with multiple sellers of an identical or differentiated product, none of them have complete control over the price or output, leading to more competition and potentially lower profits.

A Major Characteristic of Monopoly Is