Which of the Following Is a Characteristic of Monopoly

question 444

Multiple Choice

Which of the following is a characteristic of monopoly?

• A) The firm faces competition from a few 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 curve is perfectly elastic.

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Definitions:

Influence Over Price

Influence over price describes the extent to which a producer or a group of producers can determine the selling price of their goods or services in the market.

Free Enterprise System

The free enterprise system is an economic system where private businesses operate in competition and largely free of state control, based on supply and demand.

Central Planning Agency

An organization tasked with overseeing the economic planning and resource allocation in a centrally planned economy, often encompassing various industrial and service sectors.

Business Contracts

Legally binding agreements between two or more parties outlining the terms of business transactions.