Which of the following is consistent with a monopoly industry?
A) There are many firms.
B) Barriers to entry keep potential competitors out of the market.
C) There is pressure to reduce costs and improve product quality.
D) Zero economic profit in the long run.

Question

Quizplus · Accepted Answer

A monopoly industry is characterized by a single seller or producer, with no close substitutes and significant barriers to entry for potential competitors. Therefore, option B, which describes the presence of entry barriers, is consistent with a monopoly industry. Options A, C, and D are inconsistent with a monopoly industry as they describe conditions that typically occur in competitive industries, but not in monopolies.

Which of the Following Is Consistent with a Monopoly Industry