Table of contents

0. Basic Principles of Economics1h 5m
1. Reading and Understanding Graphs59m
2. Introductory Economic Models1h 10m
3. The Market Forces of Supply and Demand2h 26m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Floors3h 45m
6. Introduction to Taxes and Subsidies1h 46m
7. Externalities1h 12m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. The Costs of Production2h 35m
11. Perfect Competition2h 23m
12. Monopoly2h 13m
13. Monopolistic Competition1h 9m
14. Oligopoly1h 26m
15. Markets for the Factors of Production1h 26m
16. Income Inequality and Poverty35m
17. Asymmetric Information, Voting, and Public Choice39m
18. Consumer Choice and Behavioral Economics1h 16m

12. Monopoly

Characteristics of Monopoly

Microeconomics

12. Monopoly

Characteristics of Monopoly

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Multiple Choice

Which of the following is NOT a defining feature of monopolies?

Diseconomies of scale

No close substitutes

Influence over price

Barriers to entry

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Verified step by step guidance

Understand the defining features of a monopoly. A monopoly is a market structure characterized by a single seller, selling a unique product in the market.

Identify the key features of a monopoly: (1) A single seller, (2) No close substitutes for the product, (3) High barriers to entry, and (4) Price maker or influence over price.

Analyze each option given in the problem: 'No close substitutes', 'Influence over price', and 'Barriers to entry' are all features of a monopoly.

Consider the concept of 'Diseconomies of scale'. This refers to a situation where, as a firm increases its output, the average cost of production increases. This is not a defining feature of a monopoly.

Conclude that 'Diseconomies of scale' is the correct answer as it is not a defining feature of monopolies, unlike the other options which are characteristic of monopolistic markets.