Question

Which statement best describes a monopoly?

A.
Consumers are free to decide which company's product is better.

B.
One company controls all the means of production of a product.

C.
The government decides which companies can make a product.

D.
Many companies share the market for one product.

Answer 1

B. One company controls all the means of production of a product

However, monopoly power is where a firm has a 25% market share

Answer 2

The correct answer is B) one company controls all the means of production of a product.

The statement that best describes a monopoly is "one company controls all the means of production of a product."

In a monopoly, one company dominates and controls all the means of production and eliminate most of its competitors. This company has become too large that dominates above other minor competitors. That was the case of the Standard Oil company of John D. Rockefeller or the Steel Company of Andrew Carnegie.