ACCA Applied Knowledge · Business and Technology · Competitive factors
Which market structure is characterised by a single seller, high barriers to entry and the ability to set price without fear of direct competitors?
Monopoly is the structure with one seller, high entry barriers and strong price-setting power. Perfect competition has many price takers, and monopolistic competition has many firms with differentiated products, so neither matches a single dominant supplier.
- APerfect competition
- BMonopolyCorrect
- CMonopolistic competition
Explanation
A monopoly has one supplier and high barriers to entry, so it can influence price. Perfect competition has many price-taking firms, and monopolistic competition has many firms selling differentiated products.
Did you get it right without looking?
One question tells you little. A timed set on Competitive factors shows your real accuracy, how long you take and where you lose marks.
More Competitive factors questions
- Zenith Bags makes handcrafted leather bags with distinctive designs and sells them only to luxury buyers in a few high-end boutiques, chargi…
- A mid-sized airline offers low fares on some routes but also promotes premium service and a distinctive brand on the same routes, with no cl…
- A regional bank finds that customers can easily move their accounts to rival banks because the process is free and takes one day. Which of P…
- In Porter's value chain, which of the following is classed as a support activity rather than a primary activity?
- Which of the following is a barrier to entry that protects existing firms in an industry from new competitors?
- Which of the following would typically make supplier power HIGH for a firm?