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A monopoly is the single supplier of a product with no a. barriers to entry b. close substitutes c. established price d. limi
over the relevant range of output with declining average total costs. In a natural monopoly, a firm has a. illegal barriers b
How does the demand curve for a product in a pure monopoly compare to the demand curve for the industry? a. They are the same
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Answer #1

Ans.1- (B)

A monopoly is the sole supplier of a good in the market. Since there is no competitor of the firm so there is no close substitute for the product.

Ans.2- (D)

A natural monopoly incurs a huge fixed cost. Therefore its average cost continues to fall with an increase in output and therefore it experiences economies of scale.

Ans.3- (A)

Since there is a single firm in a market so its demand curve is the same as the demand curve for the industry.

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