In monopoly which of the following is true ?
Correct answer: C. There is one main seller
- A. There are many buyers and sellers
- B. There is one main buyer
- C. There is one main seller
- D. The actions of one firm do not affect the market price and quantity
Explanation
A monopoly has one dominant seller supplying the market, usually protected by barriers to entry. Many sellers describe competition, while a single buyer describes monopsony.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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