Scelta multipla
Which of the following is an essential characteristic of a monopoly?
141
views
12. Monopoly
Characteristics of Monopoly
Scelta multipla
Which type of market structure is characterized by the absence of competition?
A
Oligopoly
B
Monopoly
C
Monopolistic competition
D
Perfect competition
Guida verificata passo dopo passo1
Understand the definition of each market structure: Oligopoly is a market dominated by a few large firms; Monopolistic competition features many firms selling differentiated products; Perfect competition has many firms selling identical products with free entry and exit; Monopoly is a market with a single firm that is the sole seller of a product with no close substitutes.
Identify the key characteristic asked in the question: the absence of competition means there are no other firms competing in the market.
Recall that in a monopoly, the single firm controls the entire market supply and faces no direct competition because it is the only seller.
Contrast this with other market structures where multiple firms compete either on price, product differentiation, or quantity.
Conclude that the market structure characterized by the absence of competition is a monopoly.
Video correlati
Pratica correlata
