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A monopoly structure must have one seller, has no substitute, and entry into the industry is preventeD.
  • a)
    True
  • b)
    False
  • c)
    Can’t say
  • d)
    None of these
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
A monopoly structure must have one seller, has no substitute, and entr...
- A market structure is characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.
- In a monopoly market, factors like government license, ownership of resources, copyright and patent and high starting cost make an entity a single seller of goods. All these factors restrict the entry of other sellers into the market. Monopolies also possess some information that is not known to other sellers.
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A monopoly structure must have one seller, has no substitute, and entry into the industry is preventeD.a)Trueb)Falsec)Can’t sayd)None of theseCorrect answer is option 'A'. Can you explain this answer?
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