Q. When does a monopoly by a specific business entity occur in the market?
Answer: When a distinctive product is exclusively sold by a single seller
Notes: A monopoly exists when a specific entity is the sole supplier of a particular commodity. This market condition can only occur if the unique product is exclusively sold by one seller, eliminating any form of direct competition. It is regulated by certain laws to prevent marketplace inefficiency. However, a monopoly can lead to innovation as other companies strive to create an alternative or similar product.