Question 25
Market StructuresWhich of the following producers is closest to being a monopolist?
- A.A baker
- B.A wheat farmer
- C.A large chain store
- D.An automobile plant
Show the answer and explanation
Answer: D (An automobile plant)
Explanation
Making cars needs huge capital, which keeps rivals out, so a car plant faces the fewest competitors; bakers, farmers and shops face many.