In a monopoly, the lack of close substitutes for the product typically results in:

CA Foundation · Business Economics · MTP · January 2025
In a monopoly, the lack of close substitutes for the product typically results in:
(A) A. Perfect elasticity of demand
(B) B. A downward-sloping demand curve for the monopolist
(C) C. Constant returns to scale
(D) D. The ability to practice price discrimination

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. A downward-sloping demand curve for the monopolist

Topics: Price Determination in Different Markets

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