An Essential Characteristic of a Monopoly Is

question 114

Multiple Choice

An essential characteristic of a monopoly is:

• A) the good must have no close substitutes.
• B) there can only be a few sellers in the market.
• C) only one buyer must exist.
• D) many buyers must exist.

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Definitions:

Capital

The financial assets or resources that businesses and individuals use to invest, produce goods and services, including buildings, machinery, and equipment.

Output

The quantity of goods or services produced in a given period by a firm, industry, or country.

Unit of Labor

A measurement in economics referring to one hour of work or its equivalent output by a worker.

Unit of Capital

The smallest divisible amount of capital that can be invested in or allocated to a project or investment.