What describes a situation where a single company controls the supply of a good or service without close substitutes?

In economic terms, a monopoly refers to a market structure in which a single company or entity dominates the production and supply of a particular good or service. This control allows the monopolist to set prices without facing competitive pressures, as there are no close substitutes available on the market. As a result, the firm can exert significant influence over market conditions, often leading to higher prices and reduced output compared to competitive markets.

The existence of a monopoly can stem from various factors such as barriers to entry, the uniqueness of the product, or regulatory controls that prevent other companies from entering the market. This allows the monopolist to maintain its control over the supply and pricing of the good or service, often leading to inefficiencies and a lack of innovation in the market.

In contrast, competition refers to a market structure with multiple firms actively vying for customers, which generally leads to lower prices and increased variety. Liabilities and owner's equity pertain to financial accounting and represent different aspects of a company's balance sheet, rather than directly relating to market structure or supply control. Understanding the characteristics of a monopoly is crucial for analyzing market dynamics and the potential implications for consumers and the economy.