A monopoly is defined as ...

A monopoly is defined as ...

• A. One company controls the entire industry
• B. Several companies share control of the market
• C. Government owns all industries
• D. Prices are set by consumers

Answer: (A)

A monopoly is a market structure where a single firm is the sole seller of a product with no close substitutes, giving it substantial power to influence price and output because there are high barriers to entering the industry. That means one company controlling the entire industry best fits the definition. The other descriptions match different arrangements: several firms sharing control describes an oligopoly; government ownership of all industries points to a state-controlled economy; and prices set by consumers reflect a competitive market rather than a single seller's control.

A monopoly is a market structure where a single firm is the sole seller of a product with no close substitutes, giving it substantial power to influence price and output because there are high barriers to entering the industry. That means one company controlling the entire industry best fits the definition. The other descriptions match different arrangements: several firms sharing control describes an oligopoly; government ownership of all industries points to a state-controlled economy; and prices set by consumers reflect a competitive market rather than a single seller's control.