What is another name for a big business that controls an entire market?

What is another name for a big business that controls an entire market?

• A. Oligopoly
• B. Franchise
• C. Cartel
• D. Monopoly

Answer: (D)

Monopoly describes a market structure where a single firm dominates the entire market, controls the price and total output, and faces high barriers to entry that keep competitors out. Because there are no close substitutes and the firm can influence how much is produced and at what price, it effectively has market power over consumers. This directly fits the idea of a big business that controls an entire market. This differs from an oligopoly, where a few firms share influence; a cartel, where multiple firms collude to fix prices or output; and a franchise, which is simply a licensing arrangement to operate a business under another brand rather than control an entire market.

Monopoly describes a market structure where a single firm dominates the entire market, controls the price and total output, and faces high barriers to entry that keep competitors out. Because there are no close substitutes and the firm can influence how much is produced and at what price, it effectively has market power over consumers. This directly fits the idea of a big business that controls an entire market.

This differs from an oligopoly, where a few firms share influence; a cartel, where multiple firms collude to fix prices or output; and a franchise, which is simply a licensing arrangement to operate a business under another brand rather than control an entire market.