What term describes complete control of a product or business by a single company or group?

What term describes complete control of a product or business by a single company or group?

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

Answer: (B)

A monopoly means complete control of a product or business by a single company. When one firm is the sole producer or seller of a good or service, and barriers keep others from entering the market, that company can influence prices and output without competition. This is why monopolies are often regulated or targeted by antitrust laws, which in U.S. history aimed to promote competition and prevent one company from dominating an entire market. This idea differs from a cartel, where multiple firms collude to fix prices or restrict production; a cartel still involves several companies. A syndicate is a group formed to undertake a business activity, not necessarily to control an entire market. A franchise involves many independent operators using the same brand, so no single entity controls the whole market.

A monopoly means complete control of a product or business by a single company. When one firm is the sole producer or seller of a good or service, and barriers keep others from entering the market, that company can influence prices and output without competition. This is why monopolies are often regulated or targeted by antitrust laws, which in U.S. history aimed to promote competition and prevent one company from dominating an entire market.

This idea differs from a cartel, where multiple firms collude to fix prices or restrict production; a cartel still involves several companies. A syndicate is a group formed to undertake a business activity, not necessarily to control an entire market. A franchise involves many independent operators using the same brand, so no single entity controls the whole market.