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

Previous problemNext problem

Struggling with Microeconomics?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is LEAST likely to operate as a monopoly?

A pharmaceutical company with a drug patent

The sole owner of an occupational license

A store in a large shopping mall

The holder of a public utility franchise

Previous problemNext problem

Verified step by step guidance

Understand the definition of a monopoly: A monopoly exists when a single firm is the sole provider of a product or service in a market, with no close substitutes, and significant barriers to entry for other firms.

Analyze the characteristics of each option: A pharmaceutical company with a drug patent has exclusive rights to produce and sell a specific drug, creating a barrier to entry for competitors.

Consider the sole owner of an occupational license: This individual has exclusive rights to operate in a specific profession or trade, potentially limiting competition in that field.

Evaluate the holder of a public utility franchise: This entity is often granted exclusive rights by the government to provide essential services like water or electricity, typically operating as a monopoly in that region.

Assess the store in a large shopping mall: This store is one of many in a competitive retail environment, with numerous substitutes available, making it least likely to operate as a monopoly.