An essential characteristic of a monopoly is:
A) the good must have no close substitutes.
B) there can only be a few sellers in the market.
C) only one buyer must exist.
D) many buyers must exist.

Question

Quizplus · Accepted Answer

A monopoly exists when there is only one seller in a market and there are no close substitutes for the good or service that they are providing. Therefore, the essential characteristic of a monopoly is that the good must have no close substitutes. Choices B, C, and D do not accurately describe the essential characteristic of a monopoly.

An Essential Characteristic of a Monopoly Is