A market structure in which there is only one supplier and there are substantial, potentially insurmountable, barriers to new entrants is known as:

Question

BlackTom AI · Accepted Answer

A market with a single supplier and substantial, potentially insurmountable barriers to entry is the definition of a monopoly.

Relevant knowledge points and concepts:
- Number of firms: key distinguishing feature across market structures (many vs. few vs. one). 
- Barriers to entry: factors that prevent other firms from entering (legal privileges, control of a scarce resource, high startup costs, or strong economies of scale).
- Price-setting power: a single supplier in a monopoly typically has significant control over price since there are no close substitutes.

Step-by-step reasoning:
1. Compare the description (“only one supplier” + “substantial, potentially insurmountable barriers”) to standard market structure definitions.
2. Pure competition: characterized by many sellers, identical products, and free entry/exit. This contradicts “only one supplier” and “substantial barriers,” so (a) is wrong.
3. Monopolistic competition: many firms selling differentiated products with relatively low barriers to entry. Again, not “one supplier” and does not have insurmountable barriers, so (b) is wrong.
4. Oligopoly: a few large firms dominate the market and there can be significant barriers, but there is more than one supplier. The prompt specifies “only one supplier,” so (c) is wrong.
5. Monopoly: exactly one firm supplies the entire market and there are substantial barriers that prevent entry. This matches the prompt exactly.

Why the correct answer is correct:
A monopoly is the sole provider of a good or service in a market and typically exists because entry is blocked—examples include natural monopolies (utilities with large fixed costs and strong economies of scale) or legal monopolies (patents, government franchises). The defining features in the question map directly to the textbook definition of monopoly.

Other options are incorrect for the reasons above. Final answer: d. monopoly (matches the provided answer).

A market structure in which there is only one supplier and there are substantial, potentially insurmountable, barriers to new entrants is known as:单项选择题

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A market structure in which there is only one supplier and there are substantial, potentially insurmountable, barriers to new entrants is known as:单项选择题

类似问题

Which of the following best describes a market where dealers provide liquidity by buying and selling stocks for themselves?[Fill in the blank]

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According to the video, which market structure category is the car market best described as?

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The threat of competitors’ entering a market is very high in industries that perform a(n) _____ role and in industries where the primary product or service is _____.

更多留学生实用工具

希望你的学习变得更简单

When two or more large firms form a cartel, the price of products would_ and the output would_. This collusive behaviour more likely leads to a/an____ in the level of efficiency.

The threat of competitors’ entering a market is very high in industries that perform a(n) _ role and in industries where the primary product or service is _.