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Read the statement.

A monopoly’s prices are determined by _[blank]_.

Which most accurately completes the sentence?

A. competing firms
B. perfect competition
C. the monopoly
D. market equilibrium
Is it A?

It’s C, the monopoly

The correct answer to the statement is C. the monopoly. In a monopoly, there is only one firm operating in the market. As a result, the monopoly has significant control over the pricing decisions it makes. Unlike in perfect competition where prices are determined by market forces and the interaction of competing firms (option A), a monopoly can set prices based on its own considerations, such as its production costs, market demand, and desired profit margins. Therefore, option C accurately completes the sentence.

See that article from Investopedia.