Question

Describes a market structure with a single seller that produces goods with no close substitutes.

1. Monopoly
2. Oligopoly
3. Perfect Competition

Answer 1

1. Monopoly

Step-by-step explanation:

A monopoly is a market structure with one supplier selling to many buyers. In a monopoly, a single firm serves a large market with many buyers. There is no business competition in a monopoly market structure. The product or service sold by a monopoly has no close substitutes, which leaves consumers with no other alternatives.

A firm becomes a monopoly due to factors such as government policies, ownership of resources, copyrights, stringent licensing, and high start-up costs. These factors restrict other sellers from entering the market.