Which of the following is NOT a characteristic of a monopoly?

• A. There are many sellers in the market.
• B. The firm is a price maker.
• C. The product has no close substitutes.
• D. There are barriers to entry.

Answer: (A)

Verified step by step guidance

1. Understand the definition of a monopoly: A monopoly is a market structure where a single firm is the sole seller of a product with no close substitutes.
2. Identify key characteristics of a monopoly: (1) The firm is a price maker, meaning it can set the price rather than taking it from the market; (2) There are high barriers to entry that prevent other firms from entering the market; (3) The product offered has no close substitutes, giving the firm market power.
3. Analyze the option 'There are many sellers in the market': This contradicts the definition of a monopoly because a monopoly has only one seller, not many.
4. Compare each option against the monopoly characteristics to determine which one does not fit: The presence of many sellers is inconsistent with a monopoly.
5. Conclude that the statement 'There are many sellers in the market' is NOT a characteristic of a monopoly.