Which of the following is (are) true concerning monopoly?
A) It is at the opposite end of the spectrum from a perfectly competitive firm.
B) A monopoly has no rivals.
C) A monopoly does not need to worry about other firms entering the industry.
D) All of the above are true.

Question

Quizplus · Accepted Answer

All three statements are true concerning a monopoly. A monopoly is at the opposite end of the spectrum from a perfectly competitive firm as it has complete control over the supply of the good or service it produces, while a perfectly competitive firm is a price taker. A monopoly has no rivals as it is the only firm in the market producing that particular good or service. A monopoly also does not need to worry about other firms entering the industry as there are barriers to entry, such as legal restrictions or high start-up costs, that prevent other firms from entering the market and competing with the monopoly.

Which of the Following Is (Are) True Concerning Monopoly