Most firms are not monopolies in the real world because
A)firms usually face downward-sloping demand curves
B)supply curves slope upward
C)price is usually set equal to marginal cost by firms
D)monopolies are not efficient
E)there are substitutes for most goods

Question

Quizplus · Accepted Answer

Most firms are not monopolies in the real world because there are substitutes for most goods. This means that consumers have options and can choose similar products from different firms, and firms do not have complete control over the market. Additionally, A, B, and C are not reasons why firms are not monopolies. While most firms do face downward-sloping demand curves and supply curves slope upward, these factors do not necessarily prevent a firm from becoming a monopoly. And while some firms may set price equal to marginal cost, this is not a characteristic of all firms and does not prevent a firm from being a monopoly. Finally, D is not a reason why most firms are not monopolies, as some monopolies may be efficient (although they may not be as efficient as a competitive market).

Most Firms Are Not Monopolies in the Real World Because