Which of the following statements concerning monopoly is true?
A)Monopoly firms are automatically larger than perfectly competitive firms.
B)A monopoly has no rivals.
C)Barriers to entry do not prevent other firms from entering a monopolized industry.
D)Monopolists produce more output than competitive firms.

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which there is only one seller of a particular product or service, meaning that there are no close substitutes for consumers to choose from. This lack of competition gives the monopolist significant market power, allowing them to control the price and output levels in the market without fear of losing customers to competitors. Therefore, a monopoly does not have any rivals in its market. Choices A, C, and D are all false statements about monopolies as they assume characteristics that are not necessarily true for all monopolies.

Which of the Following Statements Concerning Monopoly Is True