Which type of market structure is characterized by the absence of competition?

• A. Oligopoly
• B. Monopoly
• C. Monopolistic competition
• D. Perfect competition

Answer: (B)

Verified step by step guidance

1. Understand the definition of each market structure: Oligopoly is a market dominated by a few large firms; Monopolistic competition features many firms selling differentiated products; Perfect competition has many firms selling identical products with free entry and exit; Monopoly is a market with a single firm that is the sole seller of a product with no close substitutes.
2. Identify the key characteristic asked in the question: the absence of competition means there are no other firms competing in the market.
3. Recall that in a monopoly, the single firm controls the entire market supply and faces no direct competition because it is the only seller.
4. Contrast this with other market structures where multiple firms compete either on price, product differentiation, or quantity.
5. Conclude that the market structure characterized by the absence of competition is a monopoly.