Answer:
B) no competitive producer of the same product
Explanation:
Monopoly refers to a single seller selling a unique product to a large number of buyers. A monopoly dominate the industry has total control of the market.
Characteristics of a Monopoly
1) High barrier to entry: This implies that competitors are restricted. New sellers are not allowed entry.
2) Single seller and large buyers: There is a single seller selling to a large number of consumers in the market.
3) Unique product: The product sold in a monopoly are unique have little or no close substitute.
4) Price Maker: A monopoly decides on the price he wants to sell his product. He can increase the price at will.
5) Economies of scale: A monopoly enjoys economies of scale because he can buy raw materials in large quantity at a reduced price, thereby reducing the cost of production and increasing Profits.
6) No competitor: Since the market is characterised by a single seller, high barrier to entry, then, competitor does not exist in a monopoly market.
Answer:
The correct answer is letter "B": no competitive producers of the same product.
Explanation:
Monolopies are markets where one company has almost or complete control over a certain product. That corporation acts as the only provider for a good becoming its price maker. This situation arises when firms possess certain technology and its exclusive patents that make the introduction of competitors of the same product difficult or non-existent.
In some other cases, governments license monopolies when a company is to provide an essential service important for society such us power service or water.
