Question

Helen wanted to launch a company that would market and sell computer mouses for laptops. She decided to create a strategy to enter the market. However, to her dismay, she found that the sector had very high entry barriers. The only supplier for all computer-related hardware in the country had acquired all the vendors. It was very difficult to get the raw materials to manufacture her product. What kind of market was Helen dealing with?

Answer 1

Helen is probably facing a monopoly type of market.

A monopoly market means that there is only one entity that controls the distribution and production of a product or service.

We can say this since Helen is facing a high barrier to enter the market, which is a characteristic of a monopoly market. In this case the entity is the supplier, who has acquired all vendors for all computer-related hardware.