Asked by Megan kibby on Jun 01, 2024
Verified
All these are characteristics of a monopoly except,
A) There is one seller of the product
B) Has few substitutes
C) Controls a large share of the market
D) Controls a small share of the market
Controls Small Share
The act of managing or influencing a minor portion of the market or resources.
One Seller
Indicates a market structure known as a monopoly, where a single company or entity controls the entire supply of a product or service, facing no competition.
Few Substitutes
Describes a market condition where there are limited alternative products or services, often leading to higher prices and less competition.
- Understand characteristics and defining features of monopolies.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
D
Explanation :
A monopoly is characterized by having only one seller of the product, having few substitutes, and controlling a large share of the market. Therefore, option D is not a characteristic of a monopoly, as it contradicts the definition of a monopoly. A monopoly controlling a small share of the market could lead to new firms entering the market, and thus, the market becoming more competitive.
Learning Objectives
- Understand characteristics and defining features of monopolies.