Which of the following statements is true regarding monopolies?

The statement that a monopoly exists when one company dominates a market is accurate because a monopoly is characterized by a single entity that holds significant market power, allowing it to set prices and control supply without facing competition from other firms. This dominance typically leads to a lack of alternatives for consumers, as the monopolistic company becomes the sole provider of a particular product or service in the market.

In a monopolized market, the monopolist often has the ability to influence market conditions, such as pricing and availability, in ways that would not be possible in a competitive market, where multiple companies vie for customers. As a result, consumers often have limited choices and may be subject to higher prices than they would encounter in a more competitive environment.

This definition distinguishes monopolies from other market structures, like perfect competition or oligopolies, where multiple firms exist and competition influences pricing and quality.