Which of the following is a characteristic of pure monopoly?
- Aone seller of the product
- Blow barriers to entry
- Cclose substitute products
- Dperfect information
Solution & Step-by-step Explanation
A pure monopoly is a market structure characterized by a single seller or producer of a product that has no close substitutes.
Key characteristics of a pure monopoly include:
Single Seller: A single firm dominates the entire market.
High Barriers to Entry: Extremely high barriers (such as patents, economies of scale, or government regulations) prevent other firms from entering the market.
No Close Substitutes: The product sold is unique.
Price Maker: The monopolist has significant control over the price.
Key characteristics of a pure monopoly include:
Single Seller: A single firm dominates the entire market.
High Barriers to Entry: Extremely high barriers (such as patents, economies of scale, or government regulations) prevent other firms from entering the market.
No Close Substitutes: The product sold is unique.
Price Maker: The monopolist has significant control over the price.