Which of the following exists when an industry or market has only one producer?

A) Monopoly,

B) Perfect competition,

C) Oligopoly,

D) Communism.

• A) Monopoly

A monopoly is a market structure having a single seller for a product. The monopoly is regarded as a price maker rather than a price taker as they set the price to charge for a product. A monopoly is also characterized by high entry costs which discourage small competitors from entering the market. A monopoly derives its powers from different sources which include;

1. Having control over the key raw materials required for production

2. Legal licenses and patterns and even government support

3. Economies of scale due to large production capacity