Monopoly Is Characterized by

question 12

Multiple Choice

Monopoly is characterized by

• A)many close substitutes.
• B)no barriers to entry.
• C)a downward sloping demand curve.
• D)a horizontal demand curve.

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Definitions:

Bundle Pricing

A marketing strategy where several products or services are offered for sale as a combined package at a reduced price.

Cost-Plus Pricing

A pricing method where the sale price is set by applying a predetermined markup to the cost per unit of a product.

Experience-Curve Pricing

A pricing strategy that takes into account the reduction in costs and increase in efficiency that occurs as a company gains experience producing a product or service.

Target Return-On-Investment Pricing

Setting a price to achieve an annual target return on investment (ROI).