A market where there are many firms, but one firm dominates and has the bulk (85 percent) of sales in the market, is called a
A) natural monopoly.
B) monopolistically competitive market.
C) pure monopoly.
D) near-monopoly.

Question

Quizplus · Accepted Answer

A market where one firm dominates and has the majority of the market share is known as a near-monopoly. In this market, the dominant firm has a significant degree of market power and can influence the market outcome. However, there are still other firms present in the market, which differentiates the market from a pure monopoly. A natural monopoly occurs when a single firm can supply the entire market at a lower cost than two or more competing firms, while monopolistic competition occurs when there are many firms in a market, and each firm has a slightly differentiated product.

A Market Where There Are Many Firms, but One Firm