Which of the following characteristics is NOT typical of a monopoly?

There is a high demand for the product

There are no close substitutes for the product.

There are significant barriers to entry.

There is only one seller.

Expert Solution

Microeconomic theory assumes that a monopoly is a type of market situation where there is a single seller producing or selling a particular good whose there are no close substitutes and there are considerable amounts of barriers to entry in the market. But there is no assumption about the degree of demand i.e. it is not compulsory that the demand for the good should be high or low.

Hence, there is a high demand for the product is NOT a characteristics of a typical monopoly.

Rahul Sunny answered 2 years ago

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