Question

which of the following best describes a monopoly? a. monopolies have very little control in dictating prices to consumers. b. monopolies are not subject to government oversight. c. monopolies have many competitors. d. a monopoly has complete control over an entire industry. e. monopolies have little control over sales of goods and services.

Explanation:

To determine the correct description of a monopoly, we analyze each option:

• Option A: Monopolies typically have significant control over prices (they are price makers), so this is incorrect.
• Option B: Monopolies are often subject to government oversight to prevent abuse of market power, so this is incorrect.
• Option C: A monopoly is defined by having no close competitors (it's a single seller in the market), so this is incorrect.
• Option D: By definition, a monopoly exists when a single firm has complete control over an entire industry (or a large segment of it), with no close substitutes or competitors. This matches the definition.
• Option E: Monopolies have substantial control over the sales of their goods/services due to lack of competition, so this is incorrect.

Answer:

D. A monopoly has complete control over an entire industry.