Which of the following is not a characteristic of a monopoly?
A)the seller has market power
B)one seller
C)free entry and exit
D)a product without close substitutes

Question

Quizplus · Accepted Answer

Free entry and exit means there are no barriers preventing other firms from entering the market, which is not a characteristic of a monopoly. Monopoly implies there is only one firm in the market, giving it market power and the ability to set prices above marginal cost due to lack of competition. The product being sold by the monopoly has no close substitutes, as consumers have no other options to go to.

Which of the Following Is Not a Characteristic of a Monopoly