Which of the following is a characteristic of monopoly?
A) The firm faces competition from many other firms.
B) There are barriers to enter the market.
C) The firm's demand is perfectly elastic.
D) The firm produces a product identical to that produced by its many competitors.
E) The firm produces a product that has many close substitutes.

Question

Quizplus · Accepted Answer

Barriers to entry are a defining characteristic of monopoly, as they prevent other firms from entering the market and competing with the monopoly. A is incorrect because monopoly by definition has no or few competitors. C, D, and E are also incorrect because they describe characteristics of perfectly competitive markets, not monopolies.

Which of the Following Is a Characteristic of Monopoly