ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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many producers, identical products
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few producers, similar products
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many producers, similar but varied products
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one producer, a unique product
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Detailed explanation-1: -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-2: -Under a monopoly there is only one firm that offers a product or service, experiences no competition, and sets the price, thus making it a price maker rather than a price taker. Barriers to entry are high in a monopolistic market.
Detailed explanation-3: -Key Takeaways. A monopoly is a market structure that consists of only one seller or producer. A monopoly limits available substitutes for its product and creates barriers for competitors to enter the marketplace.
Detailed explanation-4: -Definition and Examples of a Monopoly A monopoly is a company that has “monopoly power” in the market for a particular good or service.