Question

20)
Why is there no competition in a monopoly?
A)
There are no close substitutes.
B)
There are too many substitutes.
C)
Prices are set by the government.
D)
The government forbids competition.

Answer 1

Answer:

There is no competition due to the monopoly is a market structure where there is a single provider of a certain good or service. That means that a single company dominates the entire supply market. In this way, consumers who wish to acquire a good can only go to the monopolist and they must accept the conditions that this imposes. In economics this is the best example of an "imperfect competition".

This answer is based on the article: "Definition of Monopoly" publish by The Economic Times.