Question

1) A market that has a single supplier of a product with no close substitutes and barriers to entry is

a) an oligopoly.

b) monopolistically competitive.

c)a pure monopoly.

2) Barriers to entry:

Group of answer choices

a) guarantee that a firm will always earn positive economic profit.

b) cannot be maintained in the long run because other firms will always find a
way to enter a profitable industry.

c) are obstacles that make it impossible or unprofitable for new firms to enter a market in the long run.

d) characterize both perfectly competitive and monopoly markets.

d) always illegal in the United States but not necessarily in other countries.

Answer 1

1. Option C ( a pure monopoly)

Explanation-

A monopoly is a single seller that has significant market power, that is, the power to charge overly high prices. They sell goods which don't have substitutes. Also there are barriers to entry under monopoly Market.

2. Option C

Explanation-

Barriers to entry are obstacles that make it impossible or unprofitable for new firms to enter a market in the long run. They are significant in case of a monopoly and an oligopoly markets and none for perfect competition.