Which of the following is a characteristic of a monopoly?
A)Free entry
B)Single buyer
C)Price-maker
D)Price-taker
E)Product differentiation

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which a single seller sells a unique product and has the power to set prices. This makes the monopoly a price-maker, as it controls the market and can adjust prices to increase profits. Free entry (A) means that new firms can enter the market easily, which is not a characteristic of a monopoly. Single buyer (B) refers to a monopsony, which is a market structure in which there is only one buyer for a product. Price-taker (D) refers to a market structure in which firms sell identical products and must accept the market price. Product differentiation (E) refers to a strategy used by firms to distinguish their products from their competitors, which is not a characteristic of a monopoly.

Which of the Following Is a Characteristic of a Monopoly