A monopoly is an economic condition where a single producer or seller controls the market and has significant pricing power. A monopolist has the ability to charge higher prices and restrict output, leading to reduced consumer surplus and potentially higher profits. Therefore, the correct choice is B, as none of the other options accurately describe a monopoly.

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What Is a Monopoly

Question 14

Multiple Choice

What is a monopoly?

A) The most successful firm in a competitive market
B) An economic condition where a single producer controls the market
C) An economic condition where a few producers control the market
D) An economic condition where no single or group of producers control the market

Correct Answer: