Which market structure has only one firm in an industry and makes it almost impossible to enter into a market?

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BlackTom AI · Accepted Answer

The question asks: 'Which market structure has only one firm in an industry and makes it almost impossible to enter into a market?' This targets the classic economic concept of market structures and entry barriers.

Since the provided answer options are not listed, we cannot analyze each alternative specifically. Instead, we can reason through the typical structures to illuminate why the described scenario points to monopoly and why other structures would not fit as well.

First, consider monopoly: in a monopoly, there is a single firm that dominates the entire industry, and substantial or legal barriers to entry prevent other firms from entering. This aligns with the statement that entry into the market is almost impossible, because new competitors face insurmountable obstacles such as high capital requirements, legal restrictions, or control of a critical resource. Therefore, monopoly naturally explains both the single-firm condition and the great difficulty of market entry.

Now, contrast this with other common structures:
- Perfect competition features many firms, homogeneous products, and no barriers to entry; neither condition matches the description of 'only one firm' or 'entry is almost impossible.'
- Monopolistic competition also has many firms with differentiated products and relatively easy entry, which again contradicts a single-firm market.
- Oligopoly involves a few firms, not one, and while entry barriers can be significant, the defining feature is not 'only one firm' but rather a handful of dominant players; the description here emphasizes a single seller, so oligopoly is not the best fit.

Even if the answer choices were not shown, the phrase 'only one firm' and 'almost impossible to enter' strongly indicate a monopoly, since these two conditions together uniquely describe that structure among the standard market models.

In summary, the sole-firm market with high barriers to entry corresponds to monopoly, because it encapsulates both market concentration and formidable or designed barriers to new entrants. Other market structures fail to satisfy at least one of these two critical aspects, which is why they are not the correct characterization of the scenario.

SOC-ECONB 2.05 Quiz

Which market structure has only one firm in an industry and makes it almost impossible to enter into a market?

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