Which statement accurately describes a monopoly market structure?

Multiple choice question for Monopoly. Select an option, then review the explanation below.

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Numerous buyers and sellers participate in the marketA single dominant buyer controls the marketThere is only one primary seller in the marketIndividual firms have no impact on market price or outputMultiple firms compete equally in the market

Explanation

In a monopoly, the market is characterized by a single seller who controls the supply of a product or service. This means there is only one main seller, unlike competitive markets where many buyers and sellers exist. Therefore, option C is correct.

Practice related questions from the same subject.

1.Which option best describes the concept of price discrimination?
2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
3.In a pure monopoly market, how does the price compare to the marginal revenue?
4.What action should a monopolist take when marginal revenue is greater than marginal cost?
5.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?

Which statement accurately describes a monopoly market structure?

Explanation

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