An Industry with a Single Producer That Sells a Single

question 30

Multiple Choice

An industry with a single producer that sells a single product with no substitutes is a:

• A)perfectly competitive industry.
• B)monopoly.
• C)oligopoly.
• D)monopolistically competitive industry.

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Definitions:

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, including high startup costs, strict regulations, or strong incumbents.

Excess Capacity

The situation where a firm or economy can produce more goods or services than currently produced, indicating under-utilization of resources.

Marginal Costs

The additional cost incurred by producing one more unit of a product, which can vary as production scales.

Diseconomies of Scale

A situation where an increase in production leads to higher average costs for firms, contrary to economies of scale.