Question

Choose the term that best matches the description given. When a company has so much of the market they no longer have any competition, that is called a ________.

1) Monopoly
2) Oligopoly
3) Competition
4) Market share

Answer 1

A monopoly is the term that best matches the description given. In a monopoly, one firm has complete control over the market with no competition.

Step-by-step explanation:

A monopoly is the term that best matches the description given. A monopoly occurs when a company has so much of the market that it no longer faces any competition. In a monopoly, one firm produces all of the output in a market and has the power to charge any price it wishes. When a company has so much of the market that they no longer have any competition, this situation is called a monopoly. A monopoly arises when a single firm sells a product for which there are no close substitutes. One of the most commonly cited examples of a monopoly is Microsoft, due to its domination of the operating systems market. In a monopoly, the firm has a great deal of market power, producing all of the output in a market and facing no significant competition, hence able to charge any price it wishes, within the constraints of the demand curve.