Which of the following allows for a single business to control a market?

Study for the NCEA Level 1 Business Studies Test. Engage with interactive questions, complete with hints and detailed explanations. Prepare effectively for your exam!

A monopoly allows a single business to control a market by being the sole provider of a good or service. This means that no other competitors can sell the same product in that market. As a result, the monopolistic company can set prices and dictate terms without any direct competition affecting its market power. This control can lead to higher prices for consumers and less choice, as the monopolist does not have to respond to competitors' pricing or innovation.

In contrast, competitive advantage refers to the unique edge a business has over its competitors, which might allow it to perform better or attract customers but does not equate to market control. Market saturation occurs when a market is no longer able to absorb additional sales, indicating strong competition rather than control by a single entity. Market overlap is a concept where different businesses compete in the same market space, further highlighting that no single business holds control.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy