Which of the following need not be true of a monopoly?
A) The firm must be the only producer of the product.
B) The product must have no close substitutes.
C) There must be high barriers to entry.
D) The firm must earn an economic profit in the short run..

Question

Quizplus · Accepted Answer

While monopolies will often earn economic profits in the short run, it is not a necessary condition for a firm to be considered a monopoly. The other three conditions listed (being the only producer, having no close substitutes, and facing high barriers to entry) are all necessary for a firm to be considered a monopoly.

Which of the Following Need Not Be True of a Monopoly