A monopoly market is characterized by
A)many buyers and sellers.
B)"natural" products.
C)barriers to entry.
D)a Nash equilibrium.

Question

Quizplus · Accepted Answer

A monopoly market is characterized by barriers to entry, meaning that it is difficult for new firms to enter the market and compete with the existing monopoly firm. This lack of competition allows the monopoly firm to have pricing power and earn higher profits. The other options are not correct. A monopoly market typically has only one seller and many buyers (not many sellers and buyers as option A suggests), the type of product is not necessarily "natural" (option B), and the market may or may not be in a Nash equilibrium (option D).

A Monopoly Market Is Characterized by