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When the seller is the only one selling a particular product, it is known as?

1) Pure competition
2) Pure monopoly
3) Monopolistic competition
4) Oligopolistic competition
5) Perfect competition

User Monomachus
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1 Answer

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Final answer:

The scenario where a single seller is the only one providing a particular product is known as a pure monopoly, which is option 2 on the list provided. The correct option is B.

Step-by-step explanation:

When the seller is the only one selling a particular product, the market structure is known as a pure monopoly. This is notably different from pure competition (or perfect competition), where many firms sell identical products and none have enough market power to influence the price. In a monopolistic competition, many firms sell similar, but not identical, products. An oligopolistic competition, on the other hand, is characterized by a few firms selling identical or similar products.

A classic example of a monopoly is when Microsoft dominated the operating systems market, selling a product with no close substitutes. Monopolies can lead to a lack of competition, potentially resulting in higher prices and less innovation. The correct answer to the student's question is option 2) Pure monopoly, which is when a single firm is the sole provider of a product with no close substitutes.

User Deyanira
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