Which of these best defines a monopoly?
Answer and explanation
Correct answer: C. A market with a single seller of a product with no close substitutes
- Step 1: Monopoly means a single seller. Step 2. Without close substitutes the seller has price-setting power. Answer: a single seller. Why not the others: A single buyer is a monopsony, a few sellers is an oligopoly, many sellers is perfect competition.
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