The amount of power that a monopoly has is a function of whether there are close substitutes for its product.

Question

Quizplus · Accepted Answer

This is because if there are no close substitutes for the monopoly's product, then consumers have no choice but to purchase from the monopoly, giving it significant market power. However, if there are close substitutes available, the monopoly's power is reduced as consumers have alternative options to choose from.

The Amount of Power That a Monopoly Has Is a Function