Question

One of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels. a. True b. False

Answer 1

Answer:

a. True

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

Hence, a public utility company is an example of a monopoly because they serve as the only power utility provider to the general public.

Additionally, a public power company refers to a company that provides power (electricity) utility to the general public of a society.

Hence, one of the ways in which some monopolistic competitors try to become more like monopolists is through the use of designer labels.

This ultimately implies that, when there are barriers to entry it may result in monopolistic competition among the sellers of goods having no close substitutes. These barriers consist of economies of scale, network externalities, copyright law, trademark, patent, governmental policies etc.