Question

Consider the following statements :
1. monopoly represents a single seller
2. monopoly product has no substitute
3. monopoly has barriers to entry
4. monopoly represents firm and industry

• A. 1 alone is correct
• B. 1 and 2 are correct
• C. 1,2 and 3 are correct
• D. All are correct

Answer 1

The correct option is D All are correct

Monopoly is a situation where there is only one person owner of the firm. He is the only owner who can control the firm as well as set up the prices. There is less competition in this type of business. Hence, monopoly represents a single seller, product has no substitute, it also has barriers to entry as there is only one seller. It also represents firm and industry.