Question

Which of the following is not a feature of monopoly?

• A. There is a single producer of a commodity
• B. There are restrictions on entry of any other firm
• C. There are other substitutes for the commodity
• D. There are no substitutes for the commodity

Answer 1

Answer: (C)

There are other substitutes for the commodity

A monopoly market structure requires that there is a single producer of a particular commodity; no other commodity works as a substitute for this commodity; and for this situation to persist over time, sufficient restrictions are required to be in place to prevent any other firm from entering the market and to start selling the commodity.