Asked by Blukey McDowall on Jul 16, 2024
Verified
A producer is a monopoly if it is the sole supplier of a good that has no close substitutes.
Sole Supplier
A market situation in which only one company provides a particular product or service, potentially leading to monopoly power and less competitive prices.
Monopoly
A reiteration for a market structure with a single seller dominating the whole supply of a particular product or service, without close substitutes.
Substitutes
Goods or services that can be used in place of each other; when the price of one increases, the demand for the other increases.
- Appreciate the relevance of barriers to market entry in upholding a monopoly status for a prolonged duration.
Verified Answer
SA
Steven AldridgeJul 16, 2024
Final Answer :
True
Explanation :
A monopoly refers to a market situation where there is only one seller of a particular product or service, and there are no close substitutes for it. Therefore, if a producer is the sole supplier of a good that has no close substitutes, it is considered a monopoly.
Learning Objectives
- Appreciate the relevance of barriers to market entry in upholding a monopoly status for a prolonged duration.