The extent to which a firm is viewed by consumers as being a monopoly depends primarily on
A)how the government defines a monopoly
B)whether they believe there are close substitutes for the good it produces
C)the level of profits earned by the firm
D)the difference between price and marginal cost of the good it produces
E)the size of the firm

Question

Quizplus · Accepted Answer

Consumers perceive a firm as a monopoly if they believe there are no close substitutes for the good it produces, making the firm the sole provider of that product in their view.

The Extent to Which a Firm Is Viewed by Consumers