Asked by Rania Laamiri on May 20, 2024
Verified
A firm may be deemed a monopolist, even though it is not the only seller in a market, because what matters is size in relation to the market.
Monopolist
An individual or entity that holds a dominant position or exclusive control over a market or supply of a particular commodity or service.
Market Size
The total volume of sales or potential sales of a product or service within a particular market.
- Understand the basic principles of antitrust laws and their application to business practices.
- Analyze the effects of monopolistic practices and market power on competition and consumers.
Verified Answer
MT
marcc tommyMay 24, 2024
Final Answer :
True
Explanation :
A firm can be considered a monopolist if it has significant market power or a dominant market share, even if there are other smaller competitors in the market. This is because the firm's size and control over the market allow it to set prices or influence market conditions significantly.
Learning Objectives
- Understand the basic principles of antitrust laws and their application to business practices.
- Analyze the effects of monopolistic practices and market power on competition and consumers.