A monopoly
A) is not protected by barriers to entry.
B) produces a good with no close substitutes.
C) faces a downward-sloping demand curve.
D) Both answers A and B are correct.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

A monopoly produces a good with no close substitutes, and because it is the only supplier in the market, it faces a downward-sloping demand curve. Barriers to entry protect a monopoly from competition, so option A is incorrect.

A Monopoly