Which of the following is a characteristic of a monopoly?
A)It is easy for new firms to enter the market.
B)There is only one seller in the market.
C)The product is not unique.
D)The firm has no control over price.

Question

Quizplus · Accepted Answer

A monopoly is characterized by a market structure where there is only one seller controlling the supply of a good or service, giving them significant control over the price. This also implies that new firms cannot easily enter the market to compete. The product may or may not be unique, but the presence of a single seller characterizes the monopoly. Therefore, option B is the correct answer. Option A is incorrect because a lack of new entrants is associated with a monopoly. Option C is incorrect because the product can be unique or not; it is not a defining characteristic of a monopoly. Option D is incorrect because a monopoly has significant control over price.

Which of the Following Is a Characteristic of a Monopoly