ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Characteristics of a monopoly are: a single seller; many barriers to entry for new firms; no variety of goods (supplying a unique product with no close substitutes); and complete control over price.
Detailed explanation-2: -Understanding Monopolists The hallmark of a monopoly is a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller’s marginal cost that leads to excessive profit. In economics, a monopoly is a single seller.
Detailed explanation-3: -The major benefit of monopolistic competition is the supply of a wide variety of goods and services.
Detailed explanation-4: -Answer and Explanation: A monopoly is a sole industry in the entire market. The commodity sold by the monopoly has no substitutes in the entire market.