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Question
The market structure which is characterized by a single producer of a commodity and when there are no close substitutes for that commodity is ______.
Options
Monopoly market
Perfectly competitive market
Monopolistically competitive market
Monopsony market
Solution
The market structure which is characterized by a single producer of a commodity and when there are no close substitutes for that commodity is monopoly market.
Explanation:
The term "mono" signifies singular, and "poly" denotes seller. A monopoly market is defined by a solitary seller or producer offering a distinctive product or service without close alternatives. In a monopoly, the seller possesses substantial market power, allowing them to establish the product or service price to maximize their profit, uncontested by significant competition.
