When no other firm will enter the market when a monopolist produces the standard profit maximizing output, the monopoly is:
A)an anti- competitive monopoly.
B)a natural monopoly.
C)a duopoly.
D)an only monopoly.

Question

Quizplus · Accepted Answer

When no other firm enters the market, it suggests that the monopoly has significant barriers to entry, such as high fixed costs or specialized knowledge. In this case, the firm is a natural monopoly. An anti-competitive monopoly involves the use of unfair tactics to prevent other firms from entering the market. A duopoly involves two firms dominating the market. An "only monopoly" is not a commonly used term in economics.

When No Other Firm Will Enter the Market When a Monopolist