Which of the following producer is closest to being a monopolist?
Answer Details
A monopolist is a producer that has a significant amount of control over the supply and price of a particular product or service in a market. Based on this definition, the producer that is closest to being a monopolist is an automobile plant.
Automobile plants typically produce a relatively small number of models of cars, and there are significant barriers to entry for new competitors due to the high costs of establishing manufacturing facilities and supply chains. As a result, automobile plants may have a significant degree of market power and control over the price of their cars.
In contrast, a baker, a wheat farmer, and a large chain store are unlikely to be monopolists. Bakers and wheat farmers typically operate in highly competitive markets with many other producers, and large chain stores typically compete with other retailers in the same market.
Therefore, an automobile plant is the producer that is closest to being a monopolist based on the degree of control it may have over the supply and price of its products in the market.