A monopoly market structure cannot exist in an industry with an undifferentiated product.

Question

Quizplus · Accepted Answer

A monopoly market structure can exist even in an industry with an undifferentiated product, as long as the firm has complete control over the supply of that product and there are significant barriers to entry preventing other firms from competing. A monopoly market structure can exist in an industry with an undifferentiated product if the company has exclusive control over its production or distribution, leading to no close substitutes in the market. However, it can be more difficult for a monopoly to maintain its power in an undifferentiated product market because competitors can easily enter the market with a similar product.

A Monopoly Market Structure Cannot Exist in an Industry with an Undifferentiated