alleryStart learning →A market with only one supplier of a good with no close substitute is a:
- Duopoly
- Oligopoly
- Monopsony
- Monopoly
Show answer and solution
Correct answer: D. Monopoly
One seller facing no viable substitutes is the definition of a monopoly.
CA Foundation Monopoly — practice questions
Explore 19 free Monopoly questions in CA Foundation Business Economics. Open each question or exercise to read its content, reference answers and available explanation.
Practise Monopoly with Quill →Monopoly questions and exercises with answers
Showing questions 1–19 of 19.
A market with only one supplier of a good with no close substitute is a:Read the answer and worked solution →A profit-maximising monopolist chooses its output where:Read the answer and worked solution →A monopolist is described as a:Read the answer and worked solution →Under monopoly, the firm and the industry are:Read the answer and worked solution →How does a cartel differ from a monopoly?Read the answer and worked solution →Which is not one of the four basic market structures?Read the answer and worked solution →The three major types of barriers to entry are economic, legal and:Read the answer and worked solution →Patents and copyrights create which kind of entry barrier?Read the answer and worked solution →A natural monopoly experiences which cost condition over the relevant output range?Read the answer and worked solution →Under average cost pricing of a regulated monopoly, price and quantity are set where:Read the answer and worked solution →Average cost pricing leaves a regulated monopoly with what economic profit?Read the answer and worked solution →A monopoly granted by law to one private company is called a:Read the answer and worked solution →Monopoly pricing creates which welfare loss?Read the answer and worked solution →Which index is used to estimate a firm's market power?Read the answer and worked solution →Absence of close substitutes makes a monopolist's product demand:Read the answer and worked solution →Entry limit pricing involves deliberately setting a:Read the answer and worked solution →For a pure monopolist, the firm's demand curve is the:Read the answer and worked solution →Control of critical raw materials gives a firm monopoly power through:Read the answer and worked solution →If total revenue exceeds total cost, a monopolist earns:Read the answer and worked solution →
Worked practice questions
A profit-maximising monopolist chooses its output where:
- Price equals AC
- MC equals MR
- MR equals price
- TC is lowest
Show answer and solution
Correct answer: B. MC equals MR
Profit is highest where the extra revenue from the last unit equals its extra cost.
A monopolist is described as a:
- Price taker
- Cost taker
- Price maker
- Market follower
Show answer and solution
Correct answer: C. Price maker
As the only seller it can decide the price, though it is limited by the market demand it faces.
How to practise
- Choose a Monopoly question and try to work out your answer.
- Open the question to check the correct answer and read its worked solution.
- Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.