Which Is Most Characteristic of a Pure Monopoly

question 54

Multiple Choice

Which is most characteristic of a pure monopoly?

• A) There is a dominant firm in a multifirm industry.
• B) The firm produces a good or a service for which there are no close substitutes.
• C) The firm has considerable control over the quantity of the output produced,but not over price.
• D) Exit from the industry is blocked but entry into the industry is relatively easy.

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Definitions:

Age of Majority

The legally defined age at which a person is considered an adult, with full legal rights and responsibilities.

Disaffirm

The legal act of rejecting or voiding a contract or agreement, especially used in contexts where one party is not legally competent to enter into a contract.

Contract

A contract is an official agreement among two or more individuals creating reciprocal legal duties that can be upheld in court.

Emancipated

The condition of being freed from legal, social, or political restrictions; commonly referring to a minor legally recognized as capable of acting as an adult.