The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-Which of the following market structures is characterized by a single firm and huge barriers to entry?
A)Monopolistic competition
B)Oligopoly
C)Monopoly
D)Monopsony
E)Perfect competition

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-Which of the following market structures is characterized by a single firm and huge barriers to entry?
A)Monopolistic competition 
B)Oligopoly 
C)Monopoly 
D)Monopsony 
E)Perfect competition

Quizplus · Accepted Answer

The market structure characterized by a single firm and huge barriers to entry is a monopoly. In a monopoly, the single firm has complete control over the supply of the good or service and can charge a price higher than what would be charged in a perfectly competitive market. The barriers to entry prevent other firms from entering the market and competing, which allows the monopoly to maintain its control.

The Figure Given Below Shows the Aggregate Demand and Supply