A monopoly is characterized by:
A)a large number of sellers.
B)differentiated products.
C)large barriers to entry.
D)price-taking firms.
E)a single buyer.

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which a single company controls the supply of a good or service with no close substitutes. Such dominance of a single firm stems from high barriers to entry, which prevent new competitors from entering the market and challenging the monopolist's pricing and output decisions. These barriers can be caused by factors such as patented technology, exclusive access to raw materials, economies of scale, or legal regulations. Hence, C is the correct answer.

A Monopoly Is Characterized By