Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Many sellers in the market
B
A single seller controls the market
C
Easy entry and exit for firms
D
Homogeneous products
Understanding the Answer
Let's break down why this is correct
Answer
A monopoly is a market structure where a single company or entity controls the entire supply of a product or service. This means there are no close substitutes available, and consumers have no choice but to buy from this one provider. A key characteristic of a monopoly is that it can set prices higher than in competitive markets because there is no competition to drive prices down. For example, if a company is the only supplier of a specific medication, it can charge a high price since patients have no alternative options. This lack of competition can lead to less innovation and poorer service for consumers.
Detailed Explanation
In a monopoly, one company is the only seller. Other options are incorrect because Some might think many sellers can exist in a monopoly; People might believe that firms can easily join or leave a monopoly.
Key Concepts
Monopoly
Topic
Market Structures Overview
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.