A monopoly is the only seller of a product
A)with many substitutes.
B)without a close substitute.
C)with a perfectly inelastic demand.
D)without a well-defined demand curve.

Question

Quizplus · Accepted Answer

A monopoly is the only seller of a product without a close substitute. This means that there are no alternative products that consumers can purchase instead, making the demand for the monopoly's product more inelastic. With many substitutes (choice A), consumers have options and can switch to substitute goods if the monopoly's product becomes too expensive or unavailable. A monopoly may have a perfectly inelastic demand (choice C) if it controls a necessary resource or has a patented product, but this is not always the case. A monopoly may also have a well-defined demand curve (choice D) as it still needs to estimate consumer demand to set prices and maximize profits.

A Monopoly Is the Only Seller of a Product