A monopoly differs from a perfectly competitive market in that
A) a monopolist always earns a normal profit in the long run.
B) a monopoly market is easy to enter.
C) no close substitutes exist for the monopolist's product.
D) there is a lot of market power in a perfectly competitive market.

Question

Quizplus · Accepted Answer

Monopolies are characterized by the absence of close substitutes for their products, which is a key factor that differentiates them from perfectly competitive markets where many substitutes and competitors exist.

A Monopoly Differs from a Perfectly Competitive Market in That