Which of the following is a market structure of monopoly?
A) Few firms operating as price takers.
B) Single firm operating as a price taker.
C) Single firm that is a price maker.
D) All of the above are true.

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which there is a single firm that is the sole producer or seller of a product or service, giving it significant market power to set prices (price maker) without the risk of competition from other firms. Therefore, choice C is the correct answer. Choices A and B describe a market structure of perfect competition or monopolistic competition, where firms are price takers and have little market power to affect prices.

Which of the Following Is a Market Structure of Monopoly