In which of the following levels of competition does one firm control the industry and restrict competition?
A) Monopoly
B) Oligopoly
C) Monopolistic competition
D) Pure competition
E) Dominant competition

Question

Quizplus · Accepted Answer

A monopoly exists when one firm controls the entire industry, which allows them to restrict competition and charge higher prices. This is in contrast to other levels of competition, such as oligopoly and monopolistic competition, where there are multiple firms competing for market share. Pure competition involves a large number of firms competing for market share, while in dominant competition, one firm has a significant market share but does not completely control the industry.

In Which of the Following Levels of Competition Does One