The Market Structure of Monopoly Exists When

question 12

Multiple Choice

The market structure of monopoly exists when

• A) there are a small number of interdependent firms that constitute the entire market.
• B) there is a single producer of a product.
• C) there are many producers of differentiated products.
• D) there are many producers of a homogeneous product.

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Definitions:

Increasing-cost Industry

An Increasing-cost Industry is one where the input costs increase as the industry's output expands, typically due to the scarcity of some inputs or increased demand for them.

Input Prices

The costs associated with the inputs used in the production process, such as labor, raw materials, and capital.

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Marginal Product

The extra output or benefit received from using one additional unit of a resource.