CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

A market structure characterized by a single producer dominating the market is known as a monopoly. In this scenario, one company or entity has exclusive control over the entire supply of a product or service, which leads to a lack of competition. This monopoly allows the producer to set prices and dictate terms without concern for rival products or firms, often resulting in higher prices for consumers and reduced availability of options in the market.

In a monopoly, barriers to entry are typically high, preventing other businesses from entering and competing. This can arise from various factors, such as the ownership of a critical resource, government regulations, or significant economies of scale. As a result, monopolies can influence market conditions significantly and are often subject to regulation to prevent abuse of power.

The other market structures mentioned—oligopoly, monopolistic competition, and pure competition—feature varying degrees of competition and multiple producers, which fundamentally differentiates them from a monopoly.