Which One of the Following Is the Best Description of a Monopolist

question 157

Multiple Choice

Which one of the following is the best description of a monopolist?

• A) a firm that produces a single product
• B) a firm that is the sole producer of a narrowly defined product class, such as yellow, grade-A butter produced in Jackson County, Wisconsin
• C) a firm that is the sole producer of a product for which there are no good substitutes in a market with high barriers to entry
• D) a firm that is large relative to its competitors

---

Definitions:

Absolute Values

Mathematical values expressed without regard to their sign; distances from zero on the real number line.

Favorite Bundle

The combination of goods and services that maximizes a consumer's utility given their budget constraint.

Indifference Curve

An indifference curve represents a combination of two goods between which a consumer is indifferent, showing equal utility or satisfaction levels.

Absolute Values

A number's distance from zero on the number line, disregarding its direction; always a non-negative value.