BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What of the following is a feature of a monopoly?
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There is plenty of competition
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Price is set freely by the consumers
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The product sold is unique
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There are very few barriers to entry
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Explanation:
Detailed explanation-1: -Usually, a monopolist sells a product which does not have any close substitutes.
Detailed explanation-2: -In a monopolistic market, the product or service provided by the company is unique. There are no close substitutes available in the market.
Detailed explanation-3: -Product Differentiation: Product differentiation is the main feature of monopolistic competition. Product differentiation means that product of different types, brands, and qualities will be available to customers in a fixed time period.
Detailed explanation-4: -Public utilities: gas, electric, water, cable TV, and local telephone service companies, are often pure monopolies. 2.
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