Which of the following is NOT a characteristic of a monopoly?
A)A great deal of political power
B)No close substitute products
C)The ability to make an economic profit in the long run
D)Operating at the lowest point on the ATC curve

Question

Quizplus · Accepted Answer

Operating at the lowest point on the average total cost (ATC) curve is a characteristic of a natural monopoly, not necessarily a monopoly. While monopolies may have some political power, the degree of power can vary and is not necessarily a defining characteristic. Having no close substitute products and the ability to make an economic profit in the long run are commonly associated with monopolies.

Which of the Following Is NOT a Characteristic of a Monopoly