Which of the following is a characteristic of a monopoly?
A) a large number of sellers
B) homogeneous products
C) large barriers to entry
D) price taking firms

Question

Quizplus · Accepted Answer

A monopoly is characterized by having a single seller in the market with no close substitutes. This is often due to large barriers to entry, such as high startup costs or exclusive access to a key resource. Unlike in a competitive market, the monopolist has the power to set prices and restrict output, leading to potentially higher profits but also potentially higher prices for consumers. A large number of sellers (A) and homogeneous products (B) are characteristics of a competitive market, while price taking firms (D) is a characteristic of perfect competition specifically.

Which of the Following Is a Characteristic of a Monopoly