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WAEC Economics 2013 Question 41

Question 41

Market Structures

Which of the following statements is not a feature of a monopoly?

  1. A.Seller is allowed to fix his own price.
  2. B.Buyers and sellers are price takers.
  3. C.New entrances are restricted.
  4. D.There is only one seller of the commodity.
Show the answer and explanation

Answer: B (Buyers and sellers are price takers.)

Explanation

Being a price taker is a feature of perfect competition; a monopolist is a price maker.