What is the definition of a monopoly?

The definition of a monopoly centers on a market structure where a single supplier dominates the market, giving them significant control over the pricing and availability of goods or services. This power allows the monopolistic supplier to set prices above what would be expected in a competitive market, often leading to reduced output and higher prices for consumers. In essence, since there are no direct competitors, the monopolist can dictate terms without fear of losing customers to rivals.

Other options describe different market structures. For instance, having multiple suppliers corresponds to perfect competition or oligopoly, where competition among firms exists. A partnership between firms suggests a collaborative business arrangement that doesn't align with the definition of monopoly. Lastly, a situation with equal competition among firms aligns with competitive markets rather than monopoly, where one firm has complete dominance.