If there are no close substitutes for the monopoly's product, the monopoly has increased market power.

Question

Quizplus · Accepted Answer

If there are no close substitutes for the monopoly's product, it means that consumers have no alternative options and are therefore forced to purchase from the monopoly, giving the monopolist increased market power. This is because the monopoly can set higher prices without fear of losing customers to competitors.

If There Are No Close Substitutes for the Monopoly's Product