Which of the following is not consistent with a monopoly industry?
A) Production and supplies are constrained.
B) Barriers to entry keep potential competitors out of the market.
C) There is no pressure to reduce costs or improve product quality.
D) Many firms produce identical or similar products.

Question

Quizplus · Accepted Answer

The statement "Many firms produce identical or similar products" is inconsistent with a monopoly industry. A monopoly exists when a single firm in a market has control over the supply of a particular good or service, with no close substitutes available. This lack of competition allows the firm to charge higher prices and potentially limit output without fear of losing customers to other firms producing similar products.

Which of the Following Is Not Consistent with a Monopoly