10
QuizMultiple Choice

Market Structures and Competition — Unit test

Question 10 • * HSA 26-27 Economics

The lack of competition within a monopoly means that

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

Explanation

A monopoly has no direct competitors, so it does not have to match a rival’s price. The monopolist can set its own price, though how much it can charge is limited by how much consumers are willing to buy at that price. Therefore, “monopolists set their own price” is correct.

AI-written and checked against the verified answer.

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