ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A market structure in which one firm has a monopoly because of its location is a
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natural monopoly.
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geographic monopoly.
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technological monopoly.
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government monopoly.
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Explanation:
Detailed explanation-1: -What is Monopoly. Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.
Detailed explanation-2: -Geographic monopolies occur when a business is the only one offering its products or services in a particular location. Geographic monopolies are common in small towns with limited businesses, especially in the service industry.
Detailed explanation-3: -A monopoly is when a single company produces goods with no close substitute, while an oligopoly is when a small number of relatively large companies produce similar, but slightly different goods.
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