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

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

Answer: (C)

Verified step by step guidance

1. Step 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. Step 2: Identify key characteristics of a monopoly: (a) The firm is a price maker, meaning it can influence the market price; (b) There are significant barriers to entry preventing other firms from entering the market; (c) The product offered has no close substitutes.
3. Step 3: Analyze the option 'There are many sellers in the market.' In a monopoly, there is only one seller, so this characteristic does not apply.
4. Step 4: Compare each option against the monopoly characteristics to determine which one is not true for a monopoly.
5. Step 5: Conclude that the statement 'There are many sellers in the market' is not a characteristic of a monopoly because monopolies have a single seller.