Economists have developed broad and narrow definitions to identify monopolies. What is a characteristic that supports a firm being classified as a monopoly? Economists could find that a firm is a monopoly if

Question

Keyon Abbott

Business

29 December, 20:45

Economists have developed broad and narrow definitions to identify monopolies. What is a characteristic that supports a firm being classified as a monopoly? Economists could find that a firm is a monopoly if

+3

Answers (1)

Know the Answer?

Alia Gallegos · Answer 1

Explanation: A monopoly occurs when a company and its offerings dominate an industry. A natural monopoly occurs when the most efficient number of firms in the industry is one.

The four key characteristics of monopoly are:

1. a single firm selling all output in a market,

2. a unique product,

3. restrictions on entry into and exit out of the industry, and more often than not

4. specialized information about production techniques unavailable to other potential producers.

Economists could find that a firm is a monopoly if the firm is the only manufacturer of a product in the market. the firm alone determines the price of the product and it has specialised information about production techniques unavailable to others.