When a single company accounts for 100 percent of industry sales, it is an example of which type of market structure?
A) a pure monopoly
B) an oligopoly
C) monopolistic competition
D) imperfect competition

Question

Quizplus · Accepted Answer

A pure monopoly occurs when a single company is the sole producer and seller of a specific product or service in the market. Since this company accounts for 100 percent of industry sales, it fits the definition of a pure monopoly. B) An oligopoly occurs when a small number of companies dominate the market, while monopolistic competition and imperfect competition involve multiple sellers with varying degrees of differentiation and competitiveness.

When a Single Company Accounts for 100 Percent of Industry