Which of the Following Is a Characteristic of Monopoly

question 125

Multiple Choice

Which of the following is a characteristic of monopoly?

• A) The firm faces competition from many 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 is perfectly elastic.
• E) The firm produces a product identical to that produced by its many competitors.

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Definitions:

Comparative Advantage

A situation where a country, individual, or company can produce a good or service at a lower opportunity cost than others.

Specialization

The process by which individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater degrees of productive efficiency within an overall system.

Austria

A landlocked country in Central Europe, known for its mountainous terrain, historic cities, and rich cultural heritage.

Italy

A country located in southern Europe, known for its rich history, art, architecture, fashion, and cuisine, forming a boot-shaped peninsula into the Mediterranean Sea.