Which of the following is a characteristic of a monopoly? A) Many similar firms compete in the...
Question:
Which of the following is a characteristic of a monopoly?
A) Many similar firms compete in the same market.
B) Each firm sells a small percentage of the total sold in the market.
C) The market is flooded with companies that sell essentially the same commodity-like product.
D) Companies that dominate the market can set the price by controlling the quantity produced.
E) Customers have many substitutes available and are therefore responsive to changes in price.
Substitutes:
Substitutes, in economics, is the term used to describe the type of products that can be used for the same purpose as other products. The number of product substitutes affects market price and the market power of the producers.
Answer and Explanation:
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View this answerThe correct answer is D) Companies that dominate the market can set the price by controlling the quantity produced.
In a pure monopoly one firm has...
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Pure Monopoly Overview, Characteristics & Examples
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Chapter 16 / Lesson 6
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Explore the concept of pure monopoly. Learn the definition of a pure monopoly and understand its characteristics. See pure monopoly examples and when they occur.
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