A market structure characterized by monopoly is one in which:
A)a monopolist manages its affairs in such a way that entry is deterred.
B)a monopolist operates in a complacent fashion.
C)a monopolist manages to operate at the efficient scale of production.
D)a monopolist maximizes profits by producing where MR = MC.

Question

Quizplus · Accepted Answer

A monopoly exists when a single firm is the only producer of a product that has no close substitutes. In such a market structure, the monopolist has significant market power because they control the entire market. To maintain their position, they may engage in practices that deter entry of potential competitors, such as using predatory pricing or exclusive contracts.

A Market Structure Characterized by Monopoly Is One in Which