Find the synonym for the underlined words.
These local competitors have been eliminated. Walmart is free to raise the prices again, since it has established itself as a local Monopoly:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Single seller
- A monopoly is a situation in which one company or person is the only seller of a product or service in a market and so controls its price (from the Greek words for "single" and "to sell"). With its local competitors eliminated, the company is now the only seller and can raise prices freely.
Example: For years the state company had a monopoly on telephone services. - Single seller gives this very meaning: one seller with no competitor.
Example: When a market has only a single seller, buyers have no choice but to pay his price.
Why the Other Options are Incorrect?
Option 1: Two sellers — Incorrect. A market with two sellers is a duopoly, not a monopoly.
Example: Two airlines enjoyed a duopoly on that route.
Option 3: Single person — Incorrect. A monopoly is about being the only seller in a market; "single person" says nothing about selling or control of a market.
Option 4: Two persons — Incorrect. It is wrong on both counts: the number is two, and it does not refer to sellers.