Which of the following statements is correct?
A)Firms with some degree of monopoly power are common, but firms with substantial monopoly power are rare.
B)Firms with some degree of monopoly power are rare, as are firms with substantial monopoly power.
C)Firms with some degree of monopoly power are common, as are firms with substantial monopoly power.
D)Firms with some degree of monopoly power are rare, but firms with substantial monopoly power are common.

Question

Quizplus · Accepted Answer

The statement that firms with some degree of monopoly power are common is generally true, as many firms have some level of market power due to factors such as brand recognition or patent protection. However, firms with substantial monopoly power (i.e. those that can significantly influence market prices and limit competition) are relatively rare. Therefore, statement A is the most accurate.

Which of the Following Statements Is Correct