Fadia Ammunition Inc., a firm controlled and managed by the government of Fadia, is the only company that has the license to produce defense arms in the country. Which of the following industry competitive structures does this best illustrate?
A) monopolistic competition
B) monopoly
C) oligopoly
D) perfect competition

Question

Quizplus · Accepted Answer

This best illustrates a monopoly. An industry is a monopoly when there is only one (large) firm supplying the market.