Monopolies Arise When There Are

question 266

Multiple Choice

Monopolies arise when there are

• A) many substitutes but there are no barriers to entry.
• B) no close substitutes and there are no barriers to entry.
• C) no close substitutes and there are barriers to entry.
• D) many substitutes and there barriers to entry.
• E) None of the above answers are correct because the existence of a monopoly has nothing to do with the presence or absence of barriers to entry.

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Definitions:

Industry Averages

Statistical metrics that represent the average or typical performance of companies within a particular industry, used for benchmarking and analysis.

Relative Position

A term used to describe an entity's standing or rank in comparison to others in a given context, such as market share or profitability.

Industry

A sector of the economy that produces and provides related services within a specific area of production or commerce.

Base Period

The Base Period in financial analysis is a specific time period used as a standard of comparison for assessing financial or economic data over different periods.