Asked by
Alex Domingos
on Dec 12, 2024Verified
Which one of the following is the best description of a monopolist?
A) a firm that produces a single product
B) a firm that is the sole producer of a narrowly defined product class, such as yellow, grade-A butter produced in Wisconsin
C) a firm that is the sole producer of a product for which there are no good substitutes in a market with high barriers to entry
D) a firm that is large relative to its competitors
Monopolist
A solo producer or seller in a market who has significant control over the pricing and availability of a product or service, with no direct competition.
Barriers To Entry
Economic or legal obstacles that prevent new competitors from easily entering an industry or area of business.
Product Substitutes
Goods or services that can be used in place of each other, where the increase in the price of one leads to an increase in demand for the other.
- Comprehend the economic impact of monopoly and oligopoly market structures on pricing strategies, output volumes, and operational efficiency.
Verified Answer
CM
Learning Objectives
- Comprehend the economic impact of monopoly and oligopoly market structures on pricing strategies, output volumes, and operational efficiency.