Whether or not a company has a monopoly depends on the degree of interchangeability existing between its product and those sold by other firms.

Question

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The degree of interchangeability, or substitutability, between a company's product and those of other firms determines the level of competition and whether the company holds a monopoly. If no close substitutes exist, the company may have a monopoly.

Whether or Not a Company Has a Monopoly Depends on the Degree