ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Seller sets the market price
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Entry into the market is easy
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Firm sells a unique product
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One seller
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Detailed explanation-1: -Answer and Explanation: The correct answer is: c. free entry and exit. Free entry and exit are not characteristics of a monopoly.
Detailed explanation-2: -Option c) One buyer is correct This option is correct because one buyer is not a characteristic of a monopoly.
Detailed explanation-3: -A monopolistic market is a market structure with the characteristics of a pure monopoly. A monopoly exists when one supplier provides a particular good or service to many consumers. In a monopolistic market, the monopoly (or dominant company) exerts control over the market, enabling it to set the price and supply.
Detailed explanation-4: -The four key characteristics of monopoly are: (1) a single firm selling all output in a market, (2) a unique product, (3) restrictions on entry into and exit out of the industry, and more often than not (4) specialized information about production techniques unavailable to other potential producers.
Detailed explanation-5: -Single supplier. A monopolistic market is regulated by a single supplier. Barriers to entry and exit. Profit maximizer. Unique product. Price discrimination. 04-Dec-2022