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20 August, 08:45

A monopoly industry:A. has very significant barriers to entry. B. faces a downward sloping demand curve. C. produces a product for which there are no close substitutes. D. may earn economic profits or losses in the short run. E. has all of the above characteristics.

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  1. 20 August, 11:21
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    The correct answer is option E.

    Explanation:

    A monopoly is a market where there is only single producer or seller. There are restrictions on entry in the market. The firms in the monopoly are price makers. That is why they have a downward sloping demand curve.

    There are no close substitutes for the product and there is only one seller in the monopoly.

    The firm may earn profit or loss or profits in the short run based on its revenue and cost conditions.

    So, all the options given are correct.
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