BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Perfect Competition
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Monopoly
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Oligopoly
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Monopolistic Competition
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Detailed explanation-1: -Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.
Detailed explanation-2: -Monopoly refers to a market situation where there is only one seller. Buyers have no option but to purchase the commodity from that seller or to go without it. There is no close substitute for the commodity sold by the only seller.
Detailed explanation-3: -Pure Monopoly A monopoly exists when there’s a single firm that controls the entire market. The firm and industry are synonymous. This firm is the sole producer of a product, and there are no close substitutes. Because there are no alternatives, the firm has the highest level of market power.
Detailed explanation-4: -A monopoly is defined as a single firm in an industry with no close substitutes. An industry is defined as a group of firms that produce the same good. Monopoly = A single firm in an industry with no close substitutes.
Detailed explanation-5: -Hence in a monopoly market, there must be no close substitute for the product.