Which market structure features a single seller in the market?

Which market structure features a single seller in the market?

• A. Monopoly
• B. Oligopoly
• C. Perfect Competition
• D. Monopolistic Competition

Answer: (A)

A single seller in a market indicates a monopoly. When one firm is the only provider of a good or service, it faces the entire market demand and can influence the price and output more than in other structures. There are usually high barriers to entry—like high startup costs, control of essential resources, or legal protections—that prevent other firms from entering and competing. Because there are no close substitutes and entry is blocked, this firm is effectively a price-maker. In contrast, perfect competition has many firms selling identical goods with easy entry and exit, so no single firm can set the price. Monopolistic competition also has many firms, but they offer differentiated products. An oligopoly consists of a few large firms, not one. So the feature of having a single seller uniquely identifies a monopoly.

A single seller in a market indicates a monopoly. When one firm is the only provider of a good or service, it faces the entire market demand and can influence the price and output more than in other structures. There are usually high barriers to entry—like high startup costs, control of essential resources, or legal protections—that prevent other firms from entering and competing. Because there are no close substitutes and entry is blocked, this firm is effectively a price-maker.

In contrast, perfect competition has many firms selling identical goods with easy entry and exit, so no single firm can set the price. Monopolistic competition also has many firms, but they offer differentiated products. An oligopoly consists of a few large firms, not one. So the feature of having a single seller uniquely identifies a monopoly.