Which is a condition for existence of monopoly?

A Big size
B Identical product
C Absence of government taxes
D No close substitute

Correct Answer: No close substitute

No close substitute is a condition for existence of monopoly. If a close substitute exists, then the monopoly cannot exist. Remember, a monopoly can only exist when the cross-elasticity of the product that the monopolist produces is zero.
Bissoy MCQ
#Commerce #Economics

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