Two Conditions Allow a Single Seller to Become a Monopolist

question 22

Multiple Choice

Two conditions allow a single seller to become a monopolist.Those two conditions are that the firm must

• A) have something unique to sell and it must be able to estimate its demand curve.
• B) have something unique to sell and it must have a way to prevent potential competitors from entering the market.
• C) be able to estimate its demand curve and it must have a way to prevent potential competitors from entering the market.
• D) be able to segregate its consumers and it must have a way to prevent potential competitors from entering the market.
• E) have something unique to sell and it must be able to segregate its consumers.

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Definitions:

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum amount of output that can be produced from those inputs.

Factors Of Production

The inputs or resources that are used in the production of goods and services, traditionally categorized as land, labor, capital, and entrepreneurship.

Input

The resources, materials, or data put into a system, process, or machine to obtain a desired output.

Output

The amount of something produced by a person, machine, or industry.