Identify the characteristics of a monopoly firm.
A)Barred entry and homogeneous product
B)Unique product and large number of sellers
C)Standardized product and price taker
D)Barred entry and price taker
E)Barred entry and price maker

Question

Quizplus · Accepted Answer

A monopoly firm is characterized by having barred entry, which means that there are barriers preventing other firms from entering the market and competing with them. Additionally, a monopoly firm is a price maker, meaning that it has control over the price of its product or service due to its market power. This differs from a price taker, where the firm has no control over the market price and must accept the going rate.

Identify the Characteristics of a Monopoly Firm