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Which market structure is described when there is only one producer with no close substitutes and high control over price?

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Question

Which market structure is described when there is only one producer with no close substitutes and high control over price?

Options

  • Perfect competition

  • Monopoly

  • Monopolistic competition

  • Oligopoly

MCQ
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Solution

Monopoly

Explanation:

A monopoly exists when a single seller produces a product with no close substitutes and enjoys strong power to set the price.

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