26
QuizMultiple Choice

Market Structures and Competition — Quiz

Question 26 • Personal Finance and Economics

The lack of competition within a monopoly means that

Answer
A
the product’s market is small.
B
consumers must look elsewhere to find options.
C
monopolists set their own price.
D
offered goods and services are lackluster.

Explanation

With no competing sellers, a monopolist has market power and can choose the price it charges rather than simply accepting a price set by competitors. Its choices are still limited by how much consumers are willing to buy at that price. Therefore, the correct choice is “monopolists set their own price.”

AI-written and checked against the verified answer.

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