Ramsons manufactures binoculars.Although the binoculars are priced unreasonably high, Ramsons manages to sell a large number of units each year because Ramsons is the sole supplier of binoculars in the market.This is an example of:
A)a monopoly.
B)an oligopoly.
C)monopolistic competition.
D)pure competition.
E)more price competition.

Question

Quizplus · Accepted Answer

Ramsons is the sole supplier in the market, which means that it has complete control over the supply of binoculars. This situation characterizes a monopoly, which is a market structure in which a single firm dominates the industry and controls the market supply of a good or service. The high price of the binoculars indicates that there is no competition, so Ramsons can set the price at a level that maximizes its profits.

Ramsons Manufactures Binoculars