In a monopoly industry:

Question

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In a monopoly industry, the firm has the ability to set its own price as it is the sole provider of the product or service. Therefore, the firm is a price searcher, not a price taker (B) who must accept the market price. Additionally, markets are not impersonal (C) in a monopoly, as the firm is in a dominant position and has control over the market. Finally, there are not a large number of buyers and sellers (D) in a monopoly, as it is characterized by one dominant firm.

In a Monopoly Industry