Which of the following is a characteristic of a monopoly?

Similar firms compete with each other to gain the most consumers.

Cost for entry is minimal.

The firm is a price maker.

Monopoly is not a market structure that is frequently observed in the real world.

1 answer

The characteristic of a monopoly from the options provided is:

The firm is a price maker.

In a monopoly, a single firm dominates the market and has the power to set prices, unlike in competitive markets where firms are price takers. The other options do not accurately describe a monopoly.