An industry with a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is:
A)a duopoly.
B)a monopoly.
C)an oligopoly.
D)perfect competition.

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which a single firm dominates the market and there are no close substitutes for its product or service. Entry by potential rivals is prohibitively difficult due to barriers to entry such as patents, economies of scale, or government regulations. Therefore, the only producer has significant market power and can control the price of the product or service.

An Industry with a Firm That Is the Only Producer