A monopoly is
A) the single buyer of some good or service.
B) a firm that has control of a market because it is the only seller.
C) a firm that creates enormous external costs.
D) a firm that faces intense competition.
E) a cost of producing a good or service.

Question

Quizplus · Accepted Answer

A monopoly is a market structure in which a single firm is the only seller of a particular good or service. This firm has control over the price and supply of the product because there are no close substitutes available in the market. Monopolies can arise due to barriers to entry, such as high start-up costs, limited access to resources, or legal restrictions. Unlike in a competitive market, where firms must price their goods or services at the market equilibrium price, monopolies have the ability to charge higher prices and earn excess profits in the long run.

A Monopoly Is