Which of the Following Are Necessary Characteristics of a Monopoly

question 514

Multiple Choice

Which of the following are necessary characteristics of a monopoly? (i)
The firm is the sole seller of its product.
(ii)
The firm's product does not have close substitutes.
(iii)
The firm generates a large economic profit.
(iv)
The firm is located in a small geographic market.

• A)(i) and (ii) only
• B)(i) and (iii) only
• C)(i), (ii), and (iii) only
• D)(i), (ii), (iii), and (iv)

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Definitions:

Administrative Costs

Expenses related to the general operation of a business, including salaries of office staff, rent, and utilities.

Unambiguous Description

A clear, precise, and specific explanation or depiction that avoids confusion or misinterpretation.

Best Value

Refers to the most advantageous combination of cost, quality, and sustainability to achieve the greatest net benefit.

Request for Proposal (RFP)

A document issued by a company or organization asking for detailed proposals from vendors for the provision of goods or services.