How is a monopoly defined?

A monopoly is defined as the exclusive control of a commodity or service in a market. This means that a single entity or company has significant market power and is the sole provider of a particular product or service. As a result, it can dictate prices, control supply, and potentially restrict competition within that market. This type of market structure can lead to inefficiencies and can negatively affect consumers by limiting choices and increasing prices.

In contrast, the other options describe different market dynamics. A business model with multiple suppliers refers to a competitive market where various companies provide similar goods or services, fostering competition. A competitive market with many players suggests a scenario where no single entity has substantial control, which is the opposite of a monopoly. Lastly, a partnership among several businesses to share resources describes a collaborative approach rather than a monopolistic structure, where multiple businesses would typically work together without one dominating the market.