Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A monopoly is a market structure that is characterized by the presence of a single seller selling the product in the market. There will be no close substitutes available for the product in the market and there will be very strong barriers that prevent the entry of new firms into the market. Thus, the single seller will have the complete market power to determine the output and price that maximizes the profit and the seller will be able to earn a very high economic profit from the market.
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