Correct Answer: monopoly

Solution : The correct answer is monopoly .

Monopolies are market arrangements in which there is only one vendor for a product or service. This gives the monopolist complete market price power. In a monopolistic market, the monopolist will produce the level of production at which marginal income equals marginal cost. If the monopolist, on the other hand, has no or only fixed costs, the marginal cost is 0 at all output levels. This means that the monopolist will produce the amount of goods where the marginal income is zero.