Question

Which best describes the availability of substitutes in a monopoly? Price points vary. There are no substitutes. There are different brands. Products have different features.

Answer 1

B - There are no substitutes

There is no competition in a monopoly. Consumers have no substitutes and are forced to pay the price for the goods dictated by the monopolist.

Answer 2

The option which best describes the availability of substitutes in a monopoly is:

A. There are so substitutes.

Step-by-step explanation:

We have a monopoly when only one company offers a certain product or service, dominating that sector. A substitute product in economics is a product perceived by the consumer as having the same purpose as another product. For instance, I can use sweetener in my coffee instead of sugar, which means the sweetener is the substitute product when it comes to sugar. However, when there is a monopoly, substitute products cannot be found. That company detains control over that industry or sector, therefore only that company's product is available. There are no other companies producing similar products.