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What type of market competition is described in the following passage?

Local power plants are typically the sole providers of electricity in their communities, and thus have significant control over output and prices. This market structure is an example of a(n) _____.

User Xelnor
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Answer:

Monopoly

Step-by-step explanation:

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User Shree
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Answer:

The answer is Monopoly

Step-by-step explanation:

Monopoly describes the situation which supply of a service or commodity is controlled by a specific enterprise or person. The situation gives rise to what is known as a mopolisitic market structure.

A monopolistic market, like the term implies, describes a market that is dominated by just one company. In other words, it is just a single company that offers services and products to the public.

Being the only supplier, the company can raise prices, restrict output and enjoy super-normal profits.

User Steve Davis
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