In economics, a firm that faces no competitors is referred to as:

• A. an oligopoly
• B. a monopolistic competitor
• C. a perfectly competitive firm
• D. a monopoly

Answer: (D)

Verified step by step guidance

1. Understand the definitions of market structures: A monopoly is a market structure where a single firm is the sole seller of a product with no close substitutes.
2. Recall that an oligopoly consists of a few firms dominating the market, while monopolistic competition involves many firms selling differentiated products.
3. Recognize that a perfectly competitive firm faces many competitors and sells a homogeneous product, so it cannot be the sole seller.
4. Identify that the problem asks for the term describing a firm with no competitors, which matches the definition of a monopoly.
5. Conclude that the correct term for a firm facing no competitors is a monopoly.