A monopolist is
A) a firm with the largest annual sales in a country.
B) a single supplier of a good for which there is no close substitute.
C) a large firm that makes all the other firms in the industry do what it wants.
D) a supplier of a good that everyone needs with the result that it makes large profits.

Question

Quizplus · Accepted Answer

A monopolist is a single supplier of a good for which there is no close substitute. This means that the monopolist has significant market power and can set prices above the competitive level. The lack of close substitutes means that consumers have no other choice but to buy from the monopolist, giving the firm significant pricing power.

A Monopolist Is