A product market has only one seller, and that seller has a high level of market power. There are no close substitutes for the product. What type of market is this?

Question

Quizplus · Accepted Answer

This is a monopoly market, as there is only one seller with high market power and no close substitutes. Perfect competition involves many sellers with identical products and no market power, oligopoly involves a few large sellers with some degree of market power, and monopolistic competition involves many sellers with differentiated products and limited market power.

A Product Market Has Only One Seller, and That Seller