Characteristics of a monopoly include which of the following?
(i) it is the sole seller of its product
(ii) its product does not have close substitutes
(iii) it generates large economic profits
(iv) it is located in a small geographic market
A)(i), (iii), and (iv)
B)both (i) and (iii)
C)both (i) and (ii)
D)(i), (ii), (iii) and (iv)

Question

Quizplus · Accepted Answer

Monopolies are characterized by being the sole seller of their product (i) and their product not having close substitutes (ii). Large economic profits (iii) can be a result but are not a defining characteristic, and the size of the geographic market (iv) is irrelevant to the definition of a monopoly.

Characteristics of a Monopoly Include Which of the Following