Which of the Following Is a Characteristic of Monopoly

question 444

Multiple Choice

Which of the following is a characteristic of monopoly?

• A) The firm faces competition from a few other firms.
• B) The firm produces a product that has many close substitutes.
• C) There are barriers to enter the market.
• D) The firm's demand curve is perfectly elastic.

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Definitions:

Opportunity Cost

The financial impact of bypassing the next most favorable choice in a decision.

Transfer Payments

These are payments made by the government to individuals or other entities without the government receiving any goods or services in return, such as welfare checks.

Government Budget Deficit

A situation where the government's expenditures exceed its revenues over a specified period of time, leading to borrowing or debt accumulation.

Federal Deficits

The financial situation in which the government's expenditures exceed its revenues in a given fiscal year.