In which type of market is there domination by a single business?

A monopoly is characterized by the dominance of a single business in the market, which has significant control over the supply of a particular good or service. In a monopolistic market, the single firm is the sole provider, meaning that it can set prices and determine the availability of its product without direct competition. This lack of competition allows the monopolist to exert considerable influence over market conditions, including pricing and output levels, which can lead to higher prices for consumers compared to more competitive market structures.

Understanding the characteristics of other market types reinforces why a monopoly is the correct answer. In perfect competition, many firms compete against each other, leading to price taking behavior. Oligopoly involves a few firms that might dominate the market but do not have the same level of control as a monopoly, as they often have to consider the actions of their competitors. Monopolistic competition features many businesses that sell similar but not identical products, creating competition among them. In contrast, a monopoly has no competition, giving it full control over the market.