In a monopoly, what is a key feature regarding suppliers?

In a monopoly, a key feature is that only one main supplier exists in the market. This means that the monopolist is the sole producer of a particular good or service, which grants them significant market power. As a result, the monopolist can control the price and supply of the product without competition. The absence of other suppliers allows the monopolist to set prices above marginal cost, leading to higher profits compared to competitive markets.

In contrast, having multiple suppliers offering the same product indicates competition, which is characteristic of a perfectly competitive market rather than a monopoly. While prices can be regulated by the government, this option does not define the fundamental nature of a monopoly; in fact, many monopolies operate freely without government interference. Additionally, stating that suppliers must compete on price alone implies a competitive environment, which contradicts the definition of a monopoly where competition is absent. Thus, the defining aspect of a monopoly is indeed the existence of a single supplier in the market.