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:

Demand

The desire for specific goods or services accompanied by the ability and readiness to pay for them.

Supply

The total amount of a specific good or service available to consumers, potentially influencing its market price.

Supply Curve

The supply curve is a graphical representation demonstrating the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply at those prices.

Business Revenues

The total income received by a company from its sales of goods or services, before any expenses are subtracted.