Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Non Competitive markets

Question:
Which of the following are true about monopoly market structure
a) The product produced by a monopolist have close substitutes.
b) A monopolist can increase revenue by increasing price only to a certain extent, after that there will be reduction in demand.
Options:
Both a and b are true
a is true, b is not
b is true, a is not
Both a and b are false
Correct Answer:
b is true, a is not